TotalEnergies has confirmed that partners in the Mozambique LNG project will provide additional equity to replace financing withdrawn by export credit agencies from the United Kingdom and the Netherlands. The companies lost about ten percent of external funding after the agencies pulled out, as highlighted by Reuters. TotalEnergies stated in its latest communication that the equity contribution will stabilize the project’s capital structure and maintain momentum despite the change in financing conditions.
The financing adjustment comes shortly after the consortium lifted the force majeure that had halted the project since 2021 due to security challenges in Cabo Delgado. Industry reports from Reuters noted that about ninety percent of the original lenders have reaffirmed their commitment to the project, allowing the development to move forward with revised financial arrangements.
The company said the decision by partners reflects confidence in the long term viability of the multibillion dollar LNG initiative. TotalEnergies emphasised in its statement that the revised plan will ensure continuity as construction activities resume. “The additional equity contribution is part of our collective commitment to securing the project’s future and maintaining progress toward its operational targets,” the company said.
Analysts reported that the updated financing plan could help Mozambique stay on track for its target start up in 2029, a milestone that would strengthen the country’s position as a future global gas supplier. Sources from Gas Processing News noted that despite earlier concerns linked to security and human rights, the renewed capital injection signals strong investor confidence in the project’s strategic importance.
