Mozambique Gas Project Hit Again as UK Withdraws Support

The United Kingdom has suspended more than one billion dollars in planned financial support for the Mozambique LNG project. The decision marks a major setback for the twenty-billion-dollar development led by TotalEnergies. The project has struggled to recover since a violent Islamist insurgency struck Cabo Delgado in 2021, killing more than eight hundred people and forcing all operations to halt.

The British government said the investment no longer aligns with its interests. Officials cited the level of risk around the project, including climate concerns and the ongoing security crisis in northern Mozambique. The funding was planned through the UK Export Finance agency, which had approved a loan of about one point one five billion dollars to support British companies involved in the gas development. Centrica, the United Kingdom’s main natural gas supplier, had been set to buy LNG from Cabo Delgado when production began.

The decision creates new complications for Mozambique, which has positioned LNG as a pillar of its economic future. The TotalEnergies project has already been suspended for four years. Although the company has attempted to revive operations, the region remains unstable and humanitarian groups continue to warn about the impacts of conflict and displacement.

For Africa, the withdrawal highlights a growing tension between development ambitions and global shifts in energy policy. International lenders are becoming more cautious about fossil fuel projects. Communities in Cabo Delgado are still waiting for stability, and the broader question remains whether the continent can secure long-term investment without stronger security guarantees.

Mozambique now faces added pressure to restore peace, rebuild trust with investors and demonstrate that major projects can proceed safely. The future of one of Africa’s largest gas developments depends on it.

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