TotalEnergies and its partners will inject additional equity totaling approximately $2.2 billion to replace the UK Export Finance and Dutch Atradius contributions that were withdrawn after concerns over human‑rights allegations in Cabo Delgado.
The Mozambique LNG project, originally budgeted at $20 billion, has seen its first‑of‑its‑kind production pushed back to 2029. The equity injection keeps the project’s capital structure intact and allows construction to resume without a funding shortfall, but the delay and cost overruns—now estimated at $24.5 billion—remain a significant risk.
The withdrawal of UK and Dutch funding followed investigations into alleged torture, murder, and arbitrary detentions by Mozambican security forces protecting the project. TotalEnergies said it regrets that some reports were not based on on‑the‑ground investigations, but it remains committed to the project’s long‑term viability.
Management emphasized that the equity injection signals confidence in the project’s economics and the partnership’s ability to navigate security and regulatory challenges. CEO Patrick Pouyanné said, "We remain committed to the Mozambique LNG project and are working closely with the Mozambican government to resume construction and bring the project to market as soon as conditions allow."
The Mozambique LNG project is one of Africa’s largest energy developments and could position the country as a major LNG exporter. The insurgency in Cabo Delgado has caused a prolonged halt and force‑majeure declaration, but recent security improvements and international support have created a window for the project to restart. The financing move underscores the partners’ willingness to absorb additional risk to secure a strategic asset in a volatile region.
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