US EditionUK withdraws loan for Mozambique gas project
UK Export Finance withdrew $1.15 billion loan citing security and contractual issues after a jihadist attack killed 800 in Mozambique's Cabo Delgado, delaying the $20 billion LNG project.
- UK Export Finance halted funding for the Mozambique LNG project, withholding up to $1.15 billion after the consortium lifted its 2021 suspension, on Monday, December 1.
- Following the 2021 suspension after a jihadist attack that killed an estimated 800 people, TotalEnergies lifted force majeure and sought $4.5 billion in cost overruns from Mozambique.
- TotalEnergies, which owns 26.5% of the project, aims to resume production in 2029, while environmental groups noted more than 80% of Mozambicans lived below the three-dollars-per-day poverty line in 2022.
- Business Secretary Peter Kyle said `Whilst these decisions are never easy, the government believes that UK financing of this project will not advance the interests of our country`, and the British government said it remains committed to backing British exporters and Mozambique.
- Deloitte projects that several gas projects involving ENI and ExxonMobil could make Mozambique a top-10 natural gas producer, contributing 20% of African production by 2040, challenging UKEF's funding halt.
33 Articles
33 Articles
Mozambique: UK Pulls $1 Billion Financing From TotalEnergies' Mozambique LNG Project
The UK government has withdrawn more than $1 billion in planned financing for TotalEnergies' liquefied natural gas project in Mozambique, adding pressure to a development already delayed by insecurity and rising costs. UK Export Finance had committed $1.15 billion to the facility, one of eight export credit agencies backing the project's $14.9 billion financing package.
The British government withdraws its financing from the Mozambique LNG project. Another bad news for the controversial liquefied natural gas project carried by TotalEnergys is a loan of just over $1 billion that will not be paid out. Too risky, the British government estimated on 1 December.
The British government announced on Monday 1 December that it would withdraw $1.15 billion from the 20 billion project of the French hydrocarbon giant.
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