US EditionUK Withdrawal From Mozambique LNG Sparks Backlash Over Africa’s Energy Future
UK Export Finance withdrew $1.15 billion amid security and environmental concerns despite potential to produce 13 million tonnes of LNG annually, African Energy Chamber said.
- On December 1, the UK government cancelled a previously promised UK Export Finance loan, ending its participation in the Mozambique LNG project led by French oil and gas major TotalEnergies with a 26.50% stake.
- The megaproject had been stalled for over four years since Islamist insurgent attacks on the Afungi Peninsula, and developers lifted force majeure in October to restart despite improved security in northern Cabo Delgado.
- The project was financed within a broader $20b export‑credit package, and guarantees were issued through UKEF and Atradius Dutch State Business, supporting regional industries and populations affected by energy access.
- The African Energy Chamber condemned the withdrawal as a setback for Mozambique and the African continent, urging international investors to respect Africa's energy priorities and NJ Ayuk called it `a betrayal of Africa's right to energy security'.
- Lenders differ in their responses: UKEF cited newly assessed risks for withdrawing, even though the US Export‑Import Bank recently reinstated funding after reviewing the same risks.
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Despite the withdrawal of financing from the UK and Dutch credit agencies for its project in Mozambique, the French tanker reported that it had found the parade to relaunch its $20 billion gas yard.
TotalEnergies loses UK and Dutch backing for Mozambique gas project
London has withdrawn its $1.15-billion pledge to the French company, judging the investment too risky due to an ongoing jihadist threat. Preempting a similar move from the Netherlands, TotalEnergies opted out of a Dutch guarantee covering a bank loan.
LNG: TotalEnergies Explains Project Financing, Human Rights Reports
Advertisements TotalEnergies TotalEnergies has issued a formal clarification regarding the financing structure of the Mozambique LNG project following recent communications by the UK and Dutch authorities concerning the involvement of their Export Credit Agencies (ECAs)—UK Export Finance (UKEF) and Atradius.The company, on Tuesday, confirmed that in 2020, the Mozambique LNG project secured a USD 15.4 billion project financing package from a cons…
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