- UK ends $1.15 billion support due to increased risks
- Dutch minister says Total cancelled request for $1.1 billion insurance
Britain, Netherlands withdraw $2.2-B backing for TotalEnergies-led Mozambique LNG
12/2/2025
Britain and the Netherlands are withdrawing a combined $2.2 billion in support for the TotalEnergies-led Mozambique LNG project. Britain's government said it was rescinding its $1.15 billion backing for project after promising in 2020 a $300-MM loan and insurance worth about $700 MM for the $20-B project via UK Export Finance.
The Dutch government also said TotalEneriges had withdrawn a $1.1-B export insurance request for the project. Atradius Dutch State Business authorized $1.3-B in export insurance via two policies, the larger of which has been rescinded at the company's request, the Dutch finance ministry said.
Construction halted in 2021, but due to restart. Mozambique LNG's construction was halted in 2021 due to an Islamist insurgency. TotalEnergies lifted force majeure on its development in November, but made restarting conditional on the Mozambican government's approval of a new budget, which the president said he may dispute.
"In preparation to restart the project, UKEF was presented with a proposal to amend the financing terms it had agreed originally," British business minister Peter Kyle said in a statement. "My officials have evaluated the risks around the project, and it is the view of His Majesty’s Government that these risks have increased since 2020." The interests of UK taxpayers "are best served by ending our participation in the project at this time," he added.
Jihadist attacks have been back on the rise in Mozambique, with Total bringing in workers and equipment this year by air and sea for security reasons.
Project can proceed without UK, Dutch financing, TotalEnergies has said. In April, TotalEnergies CEO Patrick Pouyanne told investors that project partners could move forward without UK and Dutch financing, using equity. More than 70% of the project's financing is secured, and about 90% of the future gas production is commercialized via contracts with buyers.
Kyle said UKEF would pay back the project for any premium paid. A UKEF spokesperson declined to name the amount. The Dutch finance minister on Monday said TotalEnergies had asked to cancel part of its insurance via a letter dated November 24, just as an independent human rights review ordered by the ministry was being finalized. "This means that the Netherlands will no longer be involved in financing the project," the statement reads. A $213-MM policy insuring Dutch contractor Van Oord remains in place, a ministry spokesperson said.
TotalEnergies holds a 26.5% operating stake in Mozambique LNG. Japan's Mitsui owns 20% in the project and Mozambique state firm ENH 15%, alongside smaller stakeholders including India's ONGS and Oil India. In March, the U.S. Export-Import Bank approved a nearly $5-B loan for the project.
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