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UK Pulls $1.15 Billion From Mozambique LNG as TotalEnergies Lines Up Replacement Funding

TotalEnergies reports most lenders still back the project, with partners set to replace UK and Dutch gaps with equity.

Overview

  • Business Secretary Peter Kyle ended UKEF’s participation after a review found project risks had risen since 2020 and UK financing no longer served taxpayers’ interests.
  • TotalEnergies said about 90% of lenders have reconfirmed support and partners will inject additional equity to cover contributions previously expected from UKEF and Dutch insurer Atradius.
  • The LNG development, halted after 2021 Islamist attacks near Palma, lifted force majeure in October and is aiming for 2029 production subject to Mozambique’s approvals and budget plan.
  • The US Export-Import Bank approved a $4.7 billion loan in March, but European withdrawals narrow public financing options and may increase reliance on equity or commercial banks.
  • Environmental and human-rights groups welcomed the UK move, citing alleged abuses and high emissions, while TotalEnergies rejected the allegations and said it had no knowledge of the reported events.