United Kingdom

UK, Netherlands Pull $2.2B From Mozambique Gas Project

A necessary exit from a troubled project, or a setback to Africa's energy development?

Published DEC 2 2025

UK, Netherlands Pull $2.2B From Mozambique Gas Project

Story

Above: Satellite imagery of the TotalEnergies Mozambique LNG Project on May 23, 2025. Image credit: Gallo Images/Getty Images

The Facts

The governments of the U.K. and the Netherlands confirmed on Monday that they have both withdrawn financial support for a liquefied natural gas (LNG) project in Mozambique operated by the French energy company TotalEnergies.
The Wall Street Journal
Politico
The $20 billion LNG project was suspended in 2021 after Islamist insurgents attacked the nearby town of Palma, killing more than 800 people. The incident forced TotalEnergies to declare "force majeure" due to the deteriorating security situation in the region.
TotalEnergies
Bloomberg
Guardian
TotalEnergies
Despite the company having lifted the suspension, U.K. Secretary of State for Business and Trade Pete Kyle said on Monday that the U.K. would pull out of the project following a “detailed review,” which judged the project’s risks to have increased since 2020.
TotalEnergies
UK Parliament
Dutch Minister of Finance Eelco Heinen, meanwhile, justified the Dutch withdrawal by citing an independent study commissioned by the government, which highlighted structural human rights abuses by Mozambique's security forces and long-term systemic vulnerabilities in the country.
Dutch Government
In total, the withdrawn funding included a $1.15 billion loan issued by U.K. Export Finance (UKEF), which was agreed upon in 2020, as well as $1.1 billion from the Dutch government in export insurance for the development.
GOV.UK
Financial Times
Reuters
TotalEnergies announced on Tuesday, however, that its partners had "unanimously" agreed to provide additional equity to replace the Anglo-Dutch contributions, which represented approximately 10% of the project’s external financing.
TotalEnergies

Sources Split

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The Spin

Climate activist narrative

Withdrawing from the Mozambique LNG project was the right decision, given the extensive human rights violations and environmental destruction in the country. Gas exploration in this region has devastated local communities, who have lost both their livelihoods and lands, and threatens the survival of one of Africa's most pristine ecosystems.

Dutch Government

Oil Change International

Climate-skeptic narrative

The withdrawal from the Mozambique project directly undermines Africa's energy security and condemns millions to continued energy poverty across the continent. Europe's faux outrage stems not from legitimate concerns but rather its obsession with green ideology, which it will happily prioritize over Africa's economic well-being.

African Energy Chamber