The British government has withdrawn its $1.15 billion commitment to the TotalEnergies-led Mozambique Liquefied Natural Gas project, reversing its 2020 backing through UK Export Finance. The $20 billion development had been projected to elevate Mozambique as a key LNG exporter to Europe and Asia, but persistent setbacks, including a 2021 suspension following jihadist attacks in Cabo Delgado, continue to threaten progress. TotalEnergies has only recently lifted force majeure but maintains heightened security measures as violence resurges.
UK Business Minister Peter Kyle said the financing proposal no longer met the government’s risk tolerance, stressing that increased security and financial uncertainties made continued participation untenable. The decision, framed as protecting UK taxpayers, comes despite pressure from project partners urging export credit agencies to honour earlier commitments.
The project now faces a widening funding gap, though the US Export-Import Bank has approved nearly $5 billion in support. With TotalEnergies, Mitsui, and Mozambique’s ENH still invested, the future of the LNG venture hinges on improved security conditions and securing alternative financing.
