TotalEnergies and its partners in the $15.4 billion Mozambique LNG financing deal have decided to inject more equity in the project to replace the contributions from the UK and Dutch export credit agencies.

The UK and Dutch agencies represented about 10% of the $15.4 billion in external financing initially obtained for the project, according to Reuters.

Originally finalized in 2020, the financing deal secured funding from approximately 30 lenders, including export credit agencies and commercial banks. However, prolonged security concerns in the Cabo Delgado region forced the project into a period of force majeure, delaying construction and altering its financial timeline.

Following the lifting of force majeure, Mozambique renegotiated the terms of its financing agreements to reflect the updated project schedule. In the process, TotalEnergies and its partners decided to proceed without the participation of the British UKEF and Atradius, the UK and Dutch export credit agencies, after they failed to reconfirm their commitment to the project.

TotalEnergies, the project’s operator, expressed its appreciation to the lenders representing about 90% of the project’s financing, which have since confirmed their commitment, emphasizing the project’s importance to Mozambique’s social and economic development.

Mozambique LNG is a large-scale natural gas development project in northern Mozambique, led by TotalEnergies, aimed at monetising the country’s vast offshore gas reserves in the Rovuma Basin, transforming the country into an LNG exporter when it starts production in 2029.

However,  jihadist attacks on the area in 2021 led to a freezing of building activities in the region for four years. The Government troops sought to quell the attackers, using tactics often condemned by Non-Profit Organizations (NGO)s.