TotalEnergies Restarts $20B LNG Project in Mozambique
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10h ago
0mins
Source: seekingalpha
- Project Restart: TotalEnergies has officially restarted its $20 billion liquefied natural gas project in Mozambique, marking a significant ramp-up in activity after nearly five years of suspension, which is expected to greatly boost local economic development.
- Infrastructure Development: The mobilization of the first offshore vessel to install offshore infrastructure not only accelerates the project timeline but also creates numerous job opportunities, enhancing TotalEnergies' competitive position in the global energy market.
- Economic Impact: Mozambique's President stated that the project could generate up to $35 billion in taxes and oil profits over its lifetime, highlighting its strategic importance in driving national economic growth and resource development.
- Future Outlook: With a capacity of 13.1 million tons per year, the LNG plant is scheduled to begin its first exports in 2029, and despite ongoing security, financing, and human rights challenges, it is poised to establish Mozambique as a major gas exporter.
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Analyst Views on TTE
Wall Street analysts forecast TTE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTE is 71.67 USD with a low forecast of 60.04 USD and a high forecast of 90.93 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 71.520
Low
60.04
Averages
71.67
High
90.93
Current: 71.520
Low
60.04
Averages
71.67
High
90.93
About TTE
TotalEnergies SE is a France-based company. The Company is predominantly engaged in the business as a worldwide oil group. Its segment divisions are divided into refining and chemistry such as refining of petroleum products and manufacture of basic chemistry and of specialty chemistry, petroleum products distribution, electricity generation from combined cycle gas plants and renewable energies, gas production, trading, transport and distribution primarily includes liquefied natural gas, natural gas, biogas, hydrogen, liquefied petroleum gas and hydrocarbon operating and production. The group is also operating in trading and sea transport of crude oil and oil products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TotalEnergies: High Dividend Yield and Diversified Investments
- Dividend Appeal: TotalEnergies currently offers a 5.6% dividend yield, attracting many income-seeking investors and demonstrating the company's resilience and profitability in volatile markets.
- Diversification Strategy: The company excels not only in oil but also actively invests in electricity production, further diversifying its energy portfolio and enhancing its ability to withstand market fluctuations.
- Market Opportunities: TotalEnergies' extensive presence in emerging markets like Africa allows it to operate successfully in politically complex regions, showcasing its adaptability and growth potential.
- Competitive Advantage: Unlike other major oil companies, TotalEnergies has successfully implemented a clean energy transition while maintaining its dividend, highlighting its unique position and long-term growth prospects in the industry.
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Mozambique LNG Project Fully Restarts Activities
- Project Restart: Following a meeting with President Daniel Chapo, TotalEnergies announced the full restart of the Mozambique LNG project, marking a significant advancement since the Force Majeure declaration in 2021, which is expected to provide a substantial boost to the national economy.
- Job Creation: The restart is projected to create up to 7,000 direct jobs for Mozambicans, with contracts awarded to local companies expected to exceed $4 billion, further stimulating local economic development.
- Socio-Economic Development Program: The Mozambique LNG Foundation has launched a $200 million socio-economic development program, already creating over 8,000 jobs and supporting 7,000 farmers and fishermen, demonstrating a positive impact on local communities.
- Strategic Importance: The project's restart not only solidifies Mozambique's position as a regional energy hub but also enhances its competitiveness in the global LNG market, strengthening the country's geostrategic position.
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