UK suspends funding support for the Mozambique gas project

The UK government has said it will withdraw its funding from the Mozambique LNG project.

The withdrawal is yet another blow to the mega TotalEnergies gas project. The British government said it will not disburse over one billion dollars to the project, citing it as too risky.

The gas project in Mozambique has, over the years, been accused of fueling the climate crisis and deadly terror attacks in the region.

The project has been on hold since an Islamist insurgency attack in Cabo Delgado, killing more than 800 people in 2021.

The British Secretary of State told reporters on Monday that the project would not serve their interests.

The UK Export Finance government agency was responsible for this $1.15 billion loan. It aimed to support exports, as British companies are involved in the project. For example, Centrica, the UK's leading natural gas supplier, is scheduled to purchase LNG from Cabo Delgado.

The project, which represents a total investment of $20 billion, has been suspended for four years, and TotalEnergies has been trying to revive it for several months. TotalEnergies has not yet responded to this withdrawal of British funding.