Britain has withdrawn its $1.15 billion support for the Mozambique LNG project led by TotalEnergies due to increased risks. Initially promised in 2020, the project's financing has been a subject of scrutiny due to jihadist threats and human rights concerns. Most stakeholders aim to proceed using equity and alternative financings.

Britain Withdraws Backing from Mozambique LNG Project Amid Rising Risks

Britain Withdraws Support for TotalEnergies-Led Mozambique LNG Project

The British government has announced its decision to retract its $1.15 billion support for the TotalEnergies-led Mozambique LNG project, citing escalating risks associated with the project.

Initially backed by the UK Export Finance in 2020, the project aimed to establish Mozambique as a major liquefied natural gas exporter to Europe and Asia.

However, the project faced a halt in 2021 due to an Islamist insurgency. Despite Total lifting force majeure last November, restarting construction remains contingent on Mozambican government approvals, which may still face disputes.

Key Factors Contributing to the Decision

Escalating Risks: Increased risks associated with the project led to the decision to discontinue UK participation.
Insurgency: The project faced a halt in 2021 due to an Islamist insurgency.
Government Approvals: Restarting construction is contingent on Mozambican government approvals, which may still face disputes.

Project's Future Remains Uncertain

TotalEnergies CEO Patrick Pouyanne has assured investors that the project can advance without UK and Dutch financing, but alternative funding paths, human rights investigations, and potential court challenges continue to shape the project's future.