The British government has withdrawn its financial support for TotalEnergies’ major liquefied natural gas (LNG) project in Mozambique, dealing another setback to the long-delayed development in Cabo Delgado. The UK’s export credit agency, UK Export Finance, has cancelled a planned loan of USD 1.15 billion, saying on 1 December that continuing to back the project would “not serve British interests.”
The decision affects several British companies involved, including Centrica, the UK’s largest natural gas supplier, which had planned to purchase LNG from the facility.
Environmental groups welcomed the decision, arguing it reflects growing concern over human rights abuses and climate risks associated with the project. Lorette Philippot of Friends of the Earth said the move shows that major financial institutions are “beginning to open their eyes” to the dangers, adding that the conditions no longer justify such support.
The Dutch Government, which has provided around €1 billion in credit insurance, is also reviewing its participation amid similar human rights investigations. TotalEnergies’ USD 20 billion LNG project has been suspended for four years due to insecurity linked to armed groups, and the company has yet to comment on the UK’s withdrawal.