London bids farewell to Mozambique: TotalEnergies’s $1 billion LNG guarantee withdrawn. Too many risks.
The United Kingdom has done its due diligence and decided that the risk isn't worth the candle. In a move that combines British pragmatism with financial caution, the London government has decided to withdraw the $1.1 billion loan guarantee for TotalEnergies' mega LNG (Liquefied Natural Gas) project in Mozambique.
The official reason? The risks have increased, and the British taxpayer shouldn't have to foot the bill for uncertain geopolitical adventures.
UKEF's decision: taxpayers come first
The British government's export credit agency, UK Export Finance (UKEF) , had promised massive financial support for the project totaling $20 billion in 2020. However, Business and Trade Secretary Peter Kyle pulled the plug on Monday.
“After a detailed analysis, the UK government has decided to terminate UKEF's participation in the project. 1 This opinion is based on a comprehensive assessment of the project and the interests of UK taxpayers.” – Peter Kyle.
In simple terms: the situation is too unstable and London would rather withdraw now than deal with a financial disaster later.
A project born under an unlucky star
The timing is almost ironic for French energy giant TotalEnergies. Just a few weeks ago, the company lifted its four-year force majeure clause, signaling its intention to restart work. The project, which represents the largest foreign investment in Africa, had been stalled due to the dire security situation in the Cabo Delgado region, infested by Islamist militias.
Here's a summary of the numbers involved:
| Detail | Value / Description |
| Total project value | $20 Billion |
| UK Warranty (Withdrawn) | $1.15 Billion |
| Operator | TotalEnergies |
| Project Status | Restart after 4 years of hiatus |
| Reason for UK withdrawal | Increased risks for taxpayers |
Image of the Mozambique LNG plant, as it should look – Totalenergies
Not just security: the judicial "tittle-tattle"
As if the withdrawal of the British financiers was not enough, another problem has hit TotalEnergies, this time of a legal and ethical nature , which further complicates the reputational picture.
- The complaint: Last month, the European Centre for Constitutional and Human Rights (ECCHR) filed a criminal complaint in France.
- The charges: Complicity in war crimes, torture and enforced disappearances at the LNG site in 2021
- The detail: According to the NGO, the French giant would have provided logistical and financial support to the Mozambican "Joint Task Force", accused of committing atrocities against civilians between July and September 2021 in the very area of the gas pipeline.
TotalEnergies has firmly denied the accusations, stating that it has not received formal notification, but it's clear that the road ahead for the Mozambique LNG project remains decidedly uphill. Between the financial risks that frighten London and the legal shadows looming over Paris, the extraction of that gas still seems far off.
Questions and Answers
Why did the UK withdraw the loan guarantee?
The British government, through the UKEF agency, has assessed that the risks associated with the project have increased significantly compared to 2020. After a detailed review, it was determined that maintaining the $1.15 billion guarantee is no longer in the best interests of British taxpayers, who would be exposed to financial losses in the event of a project failure or further disruptions.
What is the legal situation regarding TotalEnergies in France?
The NGO ECCHR filed a criminal complaint accusing TotalEnergies of complicity in war crimes and torture in Mozambique in 2021. The indictment alleges that the company provided support to the local military task force, which committed violence against civilians. TotalEnergies denied the charges, stating that it had not received formal notification and that it acted properly.
Has the Mozambique LNG project been cancelled?
No, the project hasn't been canceled, but it faces mounting obstacles. TotalEnergies had just lifted the force majeure clause to restart construction after a four-year hiatus due to the Islamist insurrection. However, the loss of British financial support and legal pressure represent new, serious obstacles that could further slow operations or complicate overall financing.
The article "London bids farewell to Mozambique: TotalEnergies' €1 billion LNG guarantee withdrawn. Too many risks" comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/londra-saluta-il-mozambico-ritirata-la-garanzia-da-1-miliardo-per-il-gnl-di-totalenergies-troppi-rischi/ on Tue, 02 Dec 2025 11:00:24 +0000.