TotalEnergies Secures Financing Support for Mozambique LNG Project

PARIS, France – TotalEnergies and its partners have agreed to provide additional equity for the $20 billion Mozambique LNG project. The decision, announced on Tuesday, comes after British and Dutch export credit agencies withdrew support, which represented about 10% of the external financing.

The TotalEnergies-led liquefied natural gas project, targeting 13 million metric tons per year, aims to elevate Mozambique to a significant gas exporter with production expected to begin in 2029. However, the project has faced substantial obstacles, including a four-year construction halt due to regional jihadist attacks.

On Monday, the British government declared that it would not offer £1.15 billion in loans and export insurance for the project, citing high risks. Similarly, the Dutch government announced that TotalEnergies decided to cancel an insurance request from Atradius, its export credit agency, amid an independent human rights review.

TotalEnergies revealed the partners chose to continue without Atradius and UK Export Finance (UKEF), which were the last two agencies yet to reconfirm their financing support. ‘The Mozambique LNG partners have unanimously agreed to provide additional equity to replace the UKEF and Atradius contributions,’ the company stated.

Financing agreements with remaining lenders have been revised to accommodate the revised project schedule, following the four-year freeze. The Dutch human rights review, released on December 1, raised concerns over credible allegations of civilian torture by government forces near the project site. In response, TotalEnergies referred to the review’s reliance on third-party information rather than direct investigations.

Partners in the Mozambique LNG project include TotalEnergies (26.5%), Japan’s Mitsui (20%), Mozambique’s state-owned ENH (15%), Bharat Petroleum (10%), Oil India (10%), ONGC Videsh (10%), and Thailand’s PTTEP (8.5%). In its latest communication, TotalEnergies expressed regret that the Dutch advisors did not conduct on-the-ground assessments in Mozambique, emphasizing its commitment to transparency amidst allegations of human rights abuses.