UK Withdraws $1.15 Billion Loan for Mozambique Gas Project
The United Kingdom has officially withdrawn its $1.15 billion export-finance support for the Mozambique liquefied natural gas (LNG) project, marking a significant setback for the multi-billion-dollar venture led by TotalEnergies.
The funding, initially provided by UK Export Finance (UKEF) in 2020, was part of efforts to back the €20-billion gas project in Cabo Delgado. The UK government cited that the project “no longer advances the interests of our country,” reflecting concerns over security, human rights, and environmental risks. The Mozambique LNG project has faced major disruptions since 2021, when Islamist insurgent attacks in Cabo Delgado forced TotalEnergies to declare a force majeure and suspend operations. Environmental and human rights advocates have welcomed the UK’s decision, describing the project as a “huge carbon timebomb” and urging other financiers to reconsider their support. The withdrawal aligns with a broader global trend of reducing government-backed funding for fossil fuel projects abroad, particularly in regions plagued by conflict and environmental concerns. Despite the UK’s exit, TotalEnergies and its consortium partners have indicated intentions to resume the project. However, the development adds to ongoing financial and reputational challenges for the venture, raising questions about its viability amid persistent security threats and international scrutiny. The decision also underscores growing global attention to the environmental and social impacts of fossil fuel projects, signaling a shift toward stricter oversight of overseas investments in high-risk energy infrastructure.
