TotalEnergies Clarifies Financing Shift for Mozambique LNG Project

Core Viewpoint - TotalEnergies is clarifying the financing structure of the Mozambique LNG project after the UK and Dutch export credit agencies withdrew their commitments, with the consortium agreeing to inject additional equity to replace this funding [1][3][6]. Financing Structure - The Mozambique LNG project, one of Africa's largest LNG developments, initially secured a $15.4 billion financing package in 2020 from around 30 lenders, including multiple export credit agencies [2]. - Following a prolonged force majeure due to an Islamist insurgency in Cabo Delgado, construction was halted in 2021, leading to a renegotiation of financing terms [2]. Project Resumption - With the recent lifting of force majeure, TotalEnergies amended the financing agreement to align with the updated project timeline, although the UK and Dutch export credit agencies did not reconfirm their participation [3]. - The remaining lenders, approximately 90% of the original financing group, have reaffirmed their commitment, indicating strong support for the project's potential impact on Mozambique's economic development [4]. Human Rights and Security Concerns - TotalEnergies responded to reports commissioned by the Dutch government regarding human rights and security in Cabo Delgado, criticizing the advisors for lacking on-the-ground assessments [5]. - The company reiterated its previous statements addressing human rights allegations involving Mozambican forces and directed stakeholders to further clarifications issued in November [5]. Strategic Importance - The consortium's determination to restart the LNG plant is emphasized, as it is expected to position Mozambique as a significant global gas exporter once operational [6]. - Although the withdrawal of UK and Dutch ECA backing removes a layer of political-risk insurance, the decision to fill the gap with equity reflects confidence in the project's economics and improvements in regional security [6].