The $20 billion LNG venture off Mozambique’s coast is back in action after lifting force majeure in October. While this positions the nation to become a top 10 global gas exporter, the restart has sparked deep local frustration and economic isolation in the surrounding communities.
Palma’s Shattered Dreams
When the project launched years ago, Palma residents poured their savings into growth. Entrepreneurs constructed modern hotels, launched transport services, and built catering operations, all banking on an influx of workers and prosperity. The 2021 militant attacks suspended operations, collapsing these ventures overnight and leaving families in financial ruin.
Now, with work resuming, the company has adopted a strict “containment strategy”. All personnel are flown in directly, supplies arrive exclusively by sea, and the Afungi peninsula site functions as a heavily guarded enclave accessible only by air or water. This approach effectively cuts off local participation.
Hotel manager Fernando Cuna paints a grim picture:
“Palma has turned into a deserted shell. Our rooms sit empty, local drivers wait endlessly for fares that never come, and small businesses are bleeding out.”
Growing Resentment Fuels Danger
The isolation model arrives as civilian attacks intensify across Cabo Delgado province. Security experts warn that prioritizing resource extraction over community welfare sends a dangerous signal. This “fortress mentality” risks alienating residents, potentially strengthening insurgent recruitment and escalating regional instability.
Revenue Battle Looms
The company seeks government approval for a revised budget and timeline, pushing first production to 2029 and requesting a 10-year extension to recover $4.5 billion in suspended costs. However, Mozambique desperately needs immediate gas revenue to fund development.
Initial earnings will go toward repaying project loans, meaning the government won’t see significant income for at least a decade. Officials resist any budget increases that would further postpone this critical cash flow.
The Stark Divide
Inside the secure perimeter, international developers advance a world-class facility. Outside, local communities watch their economic hopes evaporate. The contrast between corporate progress and community exclusion grows sharper by the day.
Will the LNG wealth ever reach Palma’s people or will it only deepen division and conflict?
Your view: Security necessity or economic betrayal? Share below!
