The Mozambique LNG project partners, led by TotalEnergies, will provide additional equity funding to replace withdrawn financial support from the UK and Dutch export credit agencies. This follows decisions by UK Export Finance (UKEF) not to offer up to $1.15 billion in support and by the Netherlands' Atradius Dutch State Business (ADSB) to exit the project after TotalEnergies withdrew a $1.1 billion export credit insurance request.

Withdrawn Financial Support

UKEF's decision was made with the agreement of the project sponsors. ADSB was set to provide insurance for Dutch contractor Van Oord and arrange a financing policy for a $640 million loan from Standard Chartered. The partners' additional equity will replace these contributions, representing about 10% of the project's external financing.

Project Financing Context

The $20.5 billion project had secured $15.4 billion in financing in 2020 from about 30 lenders. Following the recent end of a force majeure period triggered by an Islamist insurgency in Cabo Delgado province, the project negotiated an amended financing agreement. The consortium decided to proceed without UKEF and ADSB as these agencies had not reconfirmed their commitment after the force majeure was lifted.

Response to External Reports

TotalEnergies commented on reports commissioned by the Dutch Ministry of Finance regarding the human rights and security situation in Cabo Delgado, regretting that the external advisors did not conduct on-the-ground investigations but relied mainly on third-party information.

Project Ownership

TotalEnergies holds a 26.5% interest in the 13-million-tonne-per-annum project. Partners include Mitsui (20%), ONGC Videsh, Bharat, and Oil India (10% each), PTTEP (8.5%), and Mozambique's state-owned ENH (15%).