What is LNG and why is it important?

LNG stands for Liquefied Natural Gas, which is natural gas that has been cooled to -260°F (-162°C), turning it into a liquid. This process reduces its volume by about 600 times, making it much easier and more economical to transport across long distances, especially where pipelines aren't practical. LNG is important because it's considered a cleaner fossil fuel alternative to coal and oil, producing fewer emissions when burned. The Mozambique project is significant because it represents one of Africa's largest natural gas developments and could transform Mozambique's economy while supplying energy to markets across Asia and Europe.

What caused the 4-year suspension of the Mozambique project?

The Mozambique LNG project was suspended in 2021 due to security concerns following violent insurgent attacks in the Cabo Delgado province where the project is located. TotalEnergies declared force majeure (unforeseeable circumstances preventing contract fulfillment) after insurgents attacked the nearby town of Palma. The resumption now comes after improved security conditions in the region and increased support from international partners, including security assistance and financial backing from various countries to stabilize the area.

What is an EPC company and why are they important for this project?

EPC stands for Engineering, Procurement, and Construction. EPC companies are responsible for designing facilities (Engineering), purchasing all necessary materials and equipment (Procurement), and building the actual infrastructure (Construction). For the Mozambique LNG project, EPC contractors play a critical role in developing the complex facilities needed to extract, process, liquefy, store, and export natural gas. These specialized firms manage everything from the initial design to the final construction of processing plants, storage tanks, loading terminals, and supporting infrastructure—making them essential partners in bringing the $20 billion project to operational status.

What are FSRUs and FPSOs mentioned in some of the stock rationales?

FSRUs (Floating Storage and Regasification Units) are specialized ships that can store LNG and convert it back to gas form. They serve as offshore LNG terminals, allowing countries to import natural gas without building expensive onshore facilities. FPSOs (Floating Production, Storage, and Offloading units) are vessels used in offshore oil and gas production that can process hydrocarbons extracted from the seabed and store them until they're transferred to tankers for transport. In the Mozambique project, these floating facilities play key roles in the offshore infrastructure needed to process gas before it reaches the main onshore liquefaction plant, providing flexible and cost-effective solutions for gas production in deep-water environments.

How might investing in this theme differ from general energy investments?

Investing in the Mozambique LNG Revival theme is more targeted and event-driven compared to general energy investments. Rather than broad exposure to energy prices or the entire sector, this theme focuses specifically on companies positioned to benefit from the resumption of a single major project. It includes not just energy producers but also the companies that provide essential services, equipment, and infrastructure. This creates a more concentrated exposure to a specific development cycle with potential for contract announcements and project milestones affecting stock performance. The theme also has a geographic focus on companies with exposure to East African energy development, which may follow different timing and growth patterns than other energy regions worldwide.

9 handpicked stocks

Mozambique LNG Revival

This carefully selected group of stocks represents companies set to benefit from TotalEnergies' resumed $20 billion LNG project in Mozambique. Our professional analysts have identified key players across engineering, infrastructure, and shipping that are directly positioned to capitalize on this major energy development.

Han Tan | Market Analyst

Published on July 15

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

TotalEnergies SE

TTE

Current price

$59.70

As the primary operator of the Mozambique LNG project, this energy major is the most direct beneficiary of its resumption. The project's success is ce...

As the primary operator of the Mozambique LNG project, this energy major is the most direct beneficiary of its resumption. The project's success is central to its growth strategy in the LNG market.

Flux Power Holdings Inc

FLUX

Current price

$1.29

Specializing in advanced energy storage solutions, this company could see demand for its power management technologies in supporting the massive energ...

Specializing in advanced energy storage solutions, this company could see demand for its power management technologies in supporting the massive energy needs of the LNG facility and related infrastructure.

KBR, Inc.

KBR

Current price

$47.12

With a strong track record in delivering large-scale energy projects, including LNG facilities, this engineering and construction firm is a potential ...

With a strong track record in delivering large-scale energy projects, including LNG facilities, this engineering and construction firm is a potential contender for significant contracts related to the project's execution.

S&P 500 ETF Trust SPDR

SPY

Current price

$669.32

Golar LNG Ltd.

GLNG

Current price

$39.33

NOBLE CORP

Current price

$28.75

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+178.05%

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About This Group of Stocks

Our Expert Thinking

TotalEnergies' decision to restart its massive LNG project in Mozambique creates a ripple effect of opportunities across the entire energy value chain. With $20 billion in investment flowing back into the project after a four-year pause, companies involved in construction, specialized equipment, and transportation are positioned for potential new contracts and revenue streams.

What You Need to Know

This investment theme focuses on a specific event—the revival of a major energy infrastructure project backed by improved security and international financing. Companies in this collection span the LNG ecosystem, from project operators to engineering firms and specialized shipping services, offering exposure to different aspects of this development.

Why These Stocks

These companies were selected based on their direct relevance to the Mozambique LNG project's needs and potential to benefit from its resumption. The collection includes the primary project operator, engineering and construction contractors, specialized equipment providers, and companies supporting the transportation and logistics infrastructure.

Group Performance Snapshot

178.05%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 178.05% over the next year.

8 of 9

Stocks Rated Buy by Analysts

8 of 9 assets in this group are rated Buy by professional analysts.

19% vs 4%

Group Growth vs Bank interest

This group averaged a 19% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🏗️

A $20 Billion Opportunity Reopens

After a four-year pause, this massive energy infrastructure project is restarting with substantial international backing. Companies throughout the supply chain could see new contracts worth millions or even billions.

🚢

The LNG Wave Is Building

Global demand for cleaner energy continues to grow, making large-scale LNG projects increasingly valuable. The companies in this collection are positioned at the forefront of this long-term trend.

🔍

Hidden Value Across The Chain

While everyone knows about TotalEnergies, many smaller specialized companies in engineering, equipment, and transportation are flying under the radar despite their essential roles in bringing this project to life.

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