A $20 billion LNG megaproject in northern Mozambique has just had two major government backers walk away. This blog unpacks why the UK and Dutch export credit agencies withdrew, how TotalEnergies and its partners are reshaping financing, and what it all means for LNG markets, risk and the communities of Cabo Delgado.
Mozambique LNG is designed to turn giant offshore gas discoveries in the Rovuma Basin into liquefied natural gas exports destined for markets in Europe and Asia. At full scale, the project is expected to produce around 13 million tonnes per year of LNG, positioning Mozambique as a significant new player in the global gas trade.
TotalEnergies leads a consortium of international partners, combining upstream production, liquefaction facilities and export infrastructure in one of the largest energy investments ever undertaken in Africa.
But behind the engineering ambition lies a complex mix of financing, security and social risks that are now reshaping the project’s trajectory.
Cabo Delgado has faced a violent insurgency since 2017, with attacks that in 2021 forced a full halt to construction and led to the declaration of force majeure. The conflict displaced thousands of people and drew intense scrutiny of how security around the project is being managed.
Independent investigations and NGOs have raised concerns about the conduct of security forces and the broader human-rights and climate implications of the project, feeding directly into risk assessments by European governments and financial institutions.
As operations move toward restart, those social and environmental questions have become just as critical as the engineering and financial ones.
In December 2025, the UK and Dutch export credit agencies confirmed that they would no longer support Mozambique LNG, removing roughly 10% of the external financing package that had been assembled for the project.
In response, TotalEnergies and its partners agreed to plug the gap with additional equity, while other lenders such as the US EXIM Bank and several Asian and international banks reaffirmed their commitments.
The result is a project that lives on, but with a capital structure that now leans more heavily on private partners and less on European public finance.
TotalEnergies’ Mozambique LNG project in Cabo Delgado is one of the biggest LNG developments in Africa and a cornerstone of the company’s gas-focused strategy. After years of suspension due to security concerns, financing and political risk have now moved to the foreground, with European export credit agencies stepping away even as other lenders double down.
A capital cost of around $20 billion and liquefaction capacity targeting 13 million tonnes per year make Mozambique LNG a potential heavyweight in future global gas supply.
With UK and Dutch export credit agencies exiting, consortium partners are stepping in with extra equity, while most of the original lender group remains committed.
Insurgency, displacement and human-rights allegations around Cabo Delgado continue to shape perceptions of the project’s social licence to operate.
If fully realised, Mozambique LNG could diversify supply for Europe and Asia but also deepen debates around long-lived fossil infrastructure in a decade of climate urgency.
0%
Approximate project budget remains around $20 billion, including additional spend during the years of force majeure and security disruption.
0%
Roughly 10% of external financing tied to UK and Dutch export credit agencies is now being covered by extra equity from project partners.
0%
The project aims for around 13 million tonnes per year of LNG output once fully operational, depending on the final build-out and timelines.
For TotalEnergies, Mozambique LNG is both a flagship investment and a test case for how large-scale fossil projects fit into an increasingly climate-conscious financial landscape. For Mozambique, it promises revenues, jobs and infrastructure but also brings exposure to price volatility, security risk and debt concerns.
As European public finance steps back and private equity steps in, the project’s evolution will be watched closely by traders, policymakers, campaigners and communities across the global LNG value chain.
The story of Mozambique LNG weaves together discovery, investment, security crisis, force majeure and now a reconfigured financing plan. Here’s how we got here.
TotalEnergies and partners secure a multi-billion-dollar financing package backed by export credit agencies and commercial lenders, positioning Mozambique LNG as a flagship LNG export project for the 2020s.
Outcome: Financial close and large-scale construction mobilised.
A surge in violent attacks in Cabo Delgado, including deadly incidents near the project area, forces evacuation of staff and the declaration of force majeure. Work on the project is halted.
Outcome: Multi-year delays, rising costs and heightened risk profile.
Regional military support, including international assistance, helps stabilise parts of Cabo Delgado. TotalEnergies begins reassessing conditions, commissioning reviews and preparing for a potential restart.
Outcome: Project viability revisited, but scrutiny on human rights grows.
UK Export Finance and the Dutch Atradius-backed programme withdraw their support, citing climate, security and human-rights concerns. Together they had accounted for about 10% of the external financing.
Outcome: Capital structure shock that prompts a rapid Plan B.
TotalEnergies and project partners agree to inject additional equity and confirm that most other lenders remain committed. Mozambique LNG moves forward with a new financing mix and a tighter spotlight on its broader impacts.
Outcome: Project continues, with risk and responsibility more tightly concentrated among partners.
Mozambique LNG is a live example of how security, ESG and financing decisions can reshape major upstream and LNG projects. If you are active in trading, risk, or investment, understanding these dynamics is essential for portfolio planning and long-term contracting.
Follow TotalEnergies’ official communications and investor updates on the Mozambique LNG project, including security assessments and financing clarifications.
Visit Project Page →Explore independent coverage on the financing shift, lender positions and project economics from energy and financial news outlets.
Reuters Energy Coverage →Read reports from NGOs and research groups examining the human-rights, climate and economic risks associated with the project and similar LNG developments.
Gas Outlook & NGO Reports →The project is led by TotalEnergies and includes partners such as Mitsui, Mozambique’s ENH and several Asian and Indian national oil companies. Together, they share ownership of the upstream fields and liquefaction facilities.
After reassessing the project, UK and Dutch agencies cited climate commitments, security developments and human-rights concerns as reasons to withdraw export credit backing, even though they had previously approved financing earlier in the decade.
No. TotalEnergies and its partners have stated that they will provide extra equity to replace the withdrawn backing, while most of the other lenders remain on board. However, the decision does underscore the growing importance of ESG risk in large fossil projects.
Timelines depend on security conditions, construction progress and final investment decisions following the revised financing structure. Analysts currently expect the project to contribute to global LNG supply later in the decade rather than mid-2020s as originally envisioned.
Key signals include any further changes in lender support, new security incidents in Cabo Delgado, updates from TotalEnergies on timelines and capital costs, and evolving climate-policy constraints on long-term LNG contracting.