The British government has withdrawn its financing from the Mozambique liquefied natural gas (LNG) project, delivering another blow to one of TotalEnergies’ largest energy ventures, which has faced years of controversy and escalating risks.
According to the decision issued on 1 December, London opted not to disburse a loan worth more than $1 billion after classifying the project as “high-risk” and not serving British interests. The UK Export Finance agency (UKEF) had committed a $1.15 billion loan intended to support British companies involved in the project, foremost among them Centrica — the UK’s main gas supplier — which was set to import LNG from Cabo Delgado in northern Mozambique.
Environmental groups welcomed the move. Lorette Filipov of Friends of the Earth described the decision as a “long-overdue financial awakening” to the risks surrounding the project. She said suspending the funding sends a “powerful message” that a major backer of the venture is now concerned about human rights abuses and environmental consequences, noting a major shift compared to 2020 as “the risks have become far too high.”
Related reports indicate that the Dutch government — another financial supporter through nearly €1 billion in export credit guarantees — is also reviewing its involvement amid human rights investigations, mirroring the UK’s stance.
The Mozambique LNG project is among the largest energy investments on the African continent, valued at $20 billion. However, it has been on hold for four years due to the deteriorating security situation in Cabo Delgado. TotalEnergies has been attempting for months to revive the project, but has not commented on the UK’s withdrawal decision.