Britain and the Netherlands have withdrawn a combined $2.2 billion in financial backing for the TotalEnergies-led Mozambique LNG project amid heightened security concerns and human rights allegations, both governments announced Monday.
The UK government said it was cancelling $1.15 billion in previously approved support — a $300 million loan and roughly $700 million in export insurance — originally pledged in 2020 for the $20 billion development in northern Mozambique.
British Business Minister Peter Kyle said the security and operational risks surrounding the project had “increased since 2020,” adding that UK taxpayers’ interests were “best served” by ending the country’s participation.
The Netherlands also confirmed that TotalEnergies had withdrawn its request for about $1.1 billion in export credit insurance. Dutch authorities said the company requested the cancellation on Nov. 24, just as a human rights review commissioned by the government was nearing completion.
TotalEnergies declined to comment, while Mozambican officials did not respond to requests for comment.
Project halted since 2021, restart still uncertain
Construction of the giant LNG project was halted in 2021 after escalating attacks by Al-Shabaab–linked militants in Cabo Delgado province. Total lifted force majeure in November but said a restart depends on the government approving a revised budget — a step Mozambican President Filipe Nyusi has signaled he may contest.
Security conditions remain fragile, with militant attacks rising again this year. Total has relied on air and sea transport to bring in equipment and personnel.
Project can proceed without UK, Dutch support
TotalEnergies CEO Patrick Pouyanné said earlier this year that the project can still advance using partner equity.
More than 70% of financing is already secured, while about 90% of future gas production is committed under long-term contracts.
A smaller Dutch insurance policy — worth $213 million — for contractor Van Oord remains in place.
Human rights scrutiny
The withdrawal by both governments comes amid renewed scrutiny of alleged human rights abuses by Mozambican security forces protecting the project.
Dutch-commissioned reviews by Clingendael and Pangea Risk found allegations of torture credible, though they could not determine TotalEnergies’ level of knowledge or involvement.
The European Center for Constitutional and Human Rights (ECCHR) also filed a criminal complaint in France last month accusing TotalEnergies of complicity in abuses — claims the company denies.
TotalEnergies holds a 26.5% operating stake in Mozambique LNG. Japan’s Mitsui owns 20%, while state-owned ENH holds 15%, alongside India’s ONGC, Oil India and other partners.
The U.S. Export-Import Bank approved a $5 billion loan for the project earlier this year.