UK Pulls Plug on Mozambique LNG Backing Amid Rising Jihadist Threats

The UK government has withdrawn its $1.15 billion support for the Mozambique LNG project due to increased risks and jihadist threats. The project, aimed at making Mozambique a key LNG exporter, has faced delays. Environmental and human rights concerns add further complications to this complex international venture.

The UK government announced its withdrawal of $1.15 billion support for the Mozambique Liquefied Natural Gas (LNG) project, initially agreed upon in 2020. The decision comes amid escalating jihadist violence in Mozambique, raising security concerns for the TotalEnergies-led initiative.

An Islamist insurgency halted the $20 billion project in 2021, which intended to position Mozambique as a major LNG exporter to Europe and Asia. TotalEnergies has made project continuation conditional on several factors, including Mozambican governmental approval of a new budget, amidst rising safety concerns.

British Business Minister Peter Kyle voiced concerns over increased project risks. Although TotalEnergies and Dutch export finance remain engaged, human rights allegations against the project have intensified scrutiny. The U.S. Export-Import Bank's approval of a $5 billion loan highlights differing international positions on the project's viability.

(With inputs from agencies.)