Mozambique LNG funding withdrawn by UK over climate concerns

The African Energy Chamber has condemned the United Kingdom’s decision to withdraw $1.15 billion in funding from the Mozambique LNG project, arguing that Western climate agendas are undermining Africa’s need for energy security and economic growth. The chamber says the move prioritises the UK’s “green and woke” agenda over African progress, focusing on emissions reductions rather than addressing energy poverty and the continent’s demand for reliable power.

The project, led by TotalEnergies, could deliver 13 million tonnes of liquefied natural gas each year, powering industry and supporting economic development in a region where millions lack reliable electricity. It is expected to create at least 10 000 direct jobs by 2025, with construction of the LNG facility alone generating around 5 000 positions. The initiative also aims to support local populations, young graduates and small‑ and medium‑sized enterprises, while boosting government revenues—state LNG‑related earnings rose by more than 20 % last year.

Security challenges have previously hampered the project; TotalEnergies suspended operations in 2021 because of instability in northern Cabo Delgado. Improved conditions have allowed the company to resume planning, pending government approval of a revised development roadmap. The U.S. Export‑Import Bank has re‑approved a loan for the project, acknowledging the better security situation on the ground.

NJ Ayuk, Executive Chairman of the African Energy Chamber, said the Mozambique LNG project exemplifies how African energy development should be: ambitious, transformative and responsible. He called for Africa to develop independent financing mechanisms, attract investors who respect its priorities, and strengthen regional cooperation to protect critical energy projects. According to Ayuk, the UK’s funding withdrawal underscores the urgent need for Africa to take control of its energy future rather than rely on foreign financing or conditional support.

In the chamber’s view, the UK decision undermines African energy security, industrial ambitions and efforts to lift millions out of energy poverty. Africa needs partnerships that respect its sovereign right to develop sustainably, align with its timelines and priorities, and avoid being dictated by external climate agendas. The success of the Mozambique LNG project is seen as crucial for delivering the energy, revenue and human capital required to power industry, improve public services and drive the continent’s economic growth.