UK Cancels $1 Billion Support for TotalEnergies' LNG Project in Mozambique

London (Bloomberg) -- The UK government announced on December 1, 2025, the withdrawal of over $1 billion in funding for TotalEnergies' liquefied natural gas (LNG) facility in Mozambique, a move that comes as the company seeks to resume construction on the project, which had been temporarily halted.

This decision coincides with TotalEnergies' attempts to relaunch development, as the project had been suspended in 2021 following an attack by ISIS-linked militias on the nearby town of Palma in northeastern Mozambique. Recently, the company had begun steps to re-secure primary funding, but the cancellation of UK support may impede these efforts.

The Mozambique gas project, located in the Afungi region and under construction, is the largest private investment in Africa before being suspended due to the security concerns stemming from the 2021 armed attack, which resulted in dozens of deaths and the displacement of thousands.

The withdrawal of UK support affects TotalEnergies' efforts to restart the facility and may lead to a scaling back of the project or delays in its timeline, threatening its status as the largest private investment in LNG in Africa and putting pressure on Mozambique's local economy, which relies on foreign investments.

No immediate official comments have been issued by TotalEnergies or the Mozambican government, but experts view this decision as a signal of escalating international pressure on investments in security-unstable regions, with calls for enhanced security efforts to attract new funding.