- Mozambique LNG secured USD 15.4 billion financing in 2020 with 30 lenders.
- Amended financing agreement aligns with updated project schedule post-force majeure.
- UKEF and Atradius contributions replaced by additional equity from partners.
- 90% of lenders confirmed commitment to the project.
Project Financing Update
In 2020, the Mozambique LNG project secured a financing package totaling USD 15.4 billion from a consortium of around 30 lenders, including Export Credit Agencies and commercial banks. Due to a prolonged force majeure period, the project negotiated an amended financing agreement to align with the updated project schedule.
Equity Adjustment
Following the lifting of force majeure and the decision to resume the project, Mozambique LNG partners opted to proceed without the participation of UK Export Finance (UKEF) and Atradius, as these agencies had not reconfirmed their commitment. The partners agreed to provide additional equity to replace the contributions from UKEF and Atradius, which represented approximately 10% of the external financing.
Lender Commitment
TotalEnergies and its partners expressed gratitude to the lenders representing about 90% of the external financing, who have confirmed their commitment to the project, recognizing its positive impact on Mozambique's development.
Human Rights Concerns
TotalEnergies acknowledged reports commissioned by the Netherlands' Ministry of Finance from external advisors Clingendael and Pangea Risk, which were published despite Atradius no longer being part of the financing. The reports addressed the human rights and security situation in Cabo Delgado. TotalEnergies noted that the advisors did not conduct on-the-ground investigations, relying instead on third-party information.
