LUSA 12/09/2025

Lusa - Business News - Mozambique: UK decision to pull funding from LNG project a 'betrayal' - AEC

Johannesburg, Dec. 8, 2025 (Lusa) - The African Energy Chamber (AEC) considers that the UK's decision to withdraw its funding for TotalEnergies' gas project in Mozambique "is a betrayal of energy security" for the African continent.

"The UK's withdrawal from funding Mozambique's Liquefied Natural Gas (LNG) project is a blow to African energy justice; withdrawing support for Mozambique's LNG is a betrayal of Africa's right to energy security and a slap in the face for the millions of people on the continent who live without reliable energy," wrote the president of this entity, which aims to promote energy investment in Africa.

Earlier this month, the UK announced it was cancelling its participation in the financing of a gas exploration project in Mozambique's northern Cabo Delgado province, led by France's TotalEnergies, which responded by assuring that the investment was not in question.

In a note sent to Lusa commenting on this cancellation, the Chamber's chief executive, NJ Ayuk, writes that "this moment should serve as a call to action and a stark reminder that Africa's energy future cannot depend solely on foreign funding or conditional support".

"Mozambique's LNG and similar projects across the continent must be championed by Africans for Africans, with a focus on responsible development, job creation and the eradication of energy poverty," warns the president of the African Energy Chamber.

The gas megaproject in question will continue without funding from the UK and the Netherlands, with the remaining financiers guaranteeing that portion, equivalent to 10% of the total, the French company revealed, adding: "The Mozambique LNG project partners have unanimously agreed to provide additional capital to replace the contributions from UKEF [United Kingdom] and Atradius [Netherlands], representing a total of approximately 10% of external financing."

At issue is the withdrawal of the two export credit agencies, UK Export Finance (UKEF) and Atradius, from the Netherlands, from the consortium financing the mega gas project - which was suspended from April 2021 to October 2025 due to terrorist attacks in Cabo Delgado.

For the African Energy Chamber, "the recent decision by the UK government to withdraw US$1.15 billion from the project is a worrying example of how Western political priorities are undermining Africa's development, and comes at a time when global energy markets are facing unprecedented pressure."

The UK, they add, "seems more focused on ideological considerations than on practical solutions to address persistent energy poverty" on the African continent.

Noting that the security challenges that forced TotalEnergies to suspend operations in 2021 have largely been resolved, the Chamber recalls that the US Export-Import Bank (US Eximbank) "reapproved a loan in early 2025, recognising the improved situation on the ground," and concludes that there is an agenda against fossil fuels, which are seen as essential for Africa.

"There are delayed or blocked projects, withheld investments, all justified in the name of climate or security concerns, while energy poverty persists; Africa does not need moral lessons on climate from nations that consume energy at levels far exceeding the continent's needs; what is essential are partnerships that respect African priorities, timelines and the sovereign right of countries to develop sustainably".

Mozambique has three approved megaprojects for the exploration of LNG reserves in the Rovuma basin, ranked among the largest in the world, off the coast of Cabo Delgado.

 

 

 

 

MBA/AYLS // AYLS

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