TotalEnergies Clarifies Financing Status of Mozambique LNG Project
TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) has issued a detailed clarification regarding the financing structure of the Mozambique LNG project following recent communications by authorities in the United Kingdom and the Netherlands about the involvement of their respective Export Credit Agencies (ECAs)—UK Export Finance (UKEF) and Atradius Dutch State Business. These agencies had previously been associated with providing backing for the major liquefied natural gas development underway in Mozambique’s Cabo Delgado province.
The Mozambique LNG project, one of the most significant energy infrastructure developments in Africa, initially secured a landmark project financing agreement in 2020 totaling USD 15.4 billion. Approximately 30 global lenders participated in the deal, including a number of ECAs and major international commercial banks. This financing package enabled the launch of construction activities aimed at developing Mozambique’s extensive offshore gas resources and establishing the country as a future global LNG exporter.
Adjustment of Financing During Force Majeure
In 2021, due to escalating security challenges caused by insurgent activity in Cabo Delgado, Mozambique LNG declared Force Majeure, resulting in a suspension of on-site construction and project execution. The prolonged pause required the consortium—comprised of TotalEnergies as operator (holding a 26.5% participating interest) and its international partners—to review and realign contractual and financing arrangements with lenders to reflect the delay. Discussions focused on adapting the financing documentation to the revised timeline, reinforcing TotalEnergies’ commitment to resuming the project under conditions that prioritize security and social stability in the region.
Following improvements in security conditions and updates to the project’s implementation schedule, TotalEnergies announced the lifting of Force Majeure in 2024, signaling the consortium’s readiness to restart the project. However, not all financing participants had reconfirmed their positions by that time.
Despite extensive communication efforts, both UKEF and Atradius had not yet revalidated their support for the financing package. Given the need for certainty to move forward efficiently, TotalEnergies and its partners decided to proceed without these two ECAs. Their expected contributions represented approximately 10% of the external project financing. The consortium members reacted proactively by unanimously agreeing to replace this amount with additional equity contributions, ensuring no disruption to project progress.
Lenders Reaffirm Broad Support for the Project
TotalEnergies extended its appreciation to the majority of its lenders—representing roughly 90% of the external financing—who reconfirmed their commitments without hesitation. This strong level of backing reflects the lenders’ continued belief in the project’s long-term economic viability and its potential to contribute significantly to Mozambique’s development. Once operational, Mozambique LNG is poised to become a critical source of revenue for the country, supporting job creation, infrastructure growth, and national energy capabilities.
TotalEnergies emphasized the transformative nature of the project not only for the global LNG market but also for the socioeconomic landscape of the host nation. The consortium views the reinstated financial support as a clear endorsement of responsible investment and a shared vision for a stable, prosperous future in Mozambique.
Response to Reports on Human Rights and Security Conditions
The company also acknowledged the publication of two advisory reports commissioned by the Dutch Ministry of Finance—one by the Clingendael Institute and another by Pangea Risk. Published on December 1st, these reports examined the human rights and security environment in Cabo Delgado. TotalEnergies noted, however, that these investigations were conducted despite Atradius no longer being a contributor to the project’s financing, and therefore no longer directly connected to the consortium.
TotalEnergies expressed disappointment that neither of the external advisory groups conducted their assessments by traveling to Mozambique or performing first-hand fieldwork. Instead, the reports largely relied on secondary sources, raising concerns about the accuracy, balance, and context of some of the findings. The company stated that on-the-ground engagement remains essential to properly understanding local realities and the progress being made to ensure safety and human rights protections in the region.
Commitment to Transparency and Respect for Human Rights
Regarding allegations of human rights violations involving the Mozambique Defense Forces and other security actors, TotalEnergies reiterated the clarifications previously communicated on November 20th, 2025. The company reaffirmed its strong commitment to compliance with international human rights standards and to ensuring that all personnel involved in the project respect community rights and dignity.
TotalEnergies emphasized that stakeholder engagement and transparency are fundamental components of the project’s approach to responsible development. The company encouraged interested parties to review detailed information available on a dedicated section of its website, which provides comprehensive documentation covering human rights due diligence, security arrangements, and the company’s commitment to supporting local communities.
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