The British and Dutch governments have announced that they are withdrawing from financing a large-scale LNG project in Mozambique led by French company TotalEnergies. British Trade Minister Peter Kyle cancelled plans to provide more than $1 billion in support. Shortly afterwards, Dutch Finance Minister Eelco Heinen confirmed that the Netherlands would no longer participate in the project., Politico reported.
The project has been heavily criticised due to violence in the region. In March 2021, a local branch of ISIS attacked the town of Palma, adjacent to the plant, killing 1,354 people, kidnapping another 209 and executing 330 by beheading. Among the victims were 55 project workers. A year later, according to an investigation, a Mozambican military unit killed at least 97 civilians. However, TotalEnergies claims to have no information about these events.
British and Dutch financial support – provided in the form of state loans and guarantees – had already been suspended following the announcement. force majeure due to deteriorating security.
Kyle now says that the risks have increased since 2020 and that British taxpayers' interests are better protected by ending participation. The Netherlands refers to an independent study that described structural human rights violations by Mozambican forces, particularly after the attack on Palma.
The decision originally came in 2020 under Boris Johnson's government, but the project has been controversial from the outset. Climate activists welcomed the move by both governments and pointed out that mining in the area could produce around 4.5 billion tonnes of greenhouse gas emissions over its lifetime – more than the combined annual emissions of all 27 EU countries.
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