Secretary of State for Science, Innovation and Technology (): In 2020, the government
committed UK Export Finance support for the Mozambique Liquified
Natural Gas (LNG) project operated by TotalEnergies. Mozambique
LNG was paused in 2021 when force majeure was called due
to the deteriorating local security situation and the terrorist
insurgency. In preparation to restart the project, UKEF was
presented with a proposal to amend the financing terms it had
agreed originally. There has been much media speculation on this
matter, and I am now able to address the subject and update
members of the House. After a detailed review, the UK Government
has decided to end UKEF's participation in the project.
My officials have evaluated the risks around the project, and it
is the view of His Majesty's Government that these risks have
increased since 2020. This view is based on a comprehensive
assessment of the project and the interests of UK taxpayers,
which are best served by ending our participation in the project
at this time. Whilst these decisions are never easy, the
government believes that UK financing of this project will not
advance the interests of our country.
UKEF has over 100 years' track record as a reliable financing
partner in support of UK exports and exporters. The decision to
end participation in Mozambique LNG at this time is specific to
this project and made with the agreement of the project sponsors
and other participants. UK Export Finance will reimburse the
project for the premium paid, reflecting the end of the
department's risk exposure to the project.
The government remains committed to backing British exporters,
including through support from UKEF, as we have set out in our
Industrial and Trade Strategies. We also remain committed to our
national partnership with Mozambique and building long-term
respectful relationships with African countries to boost
sustainable growth, tackle the climate crisis and address
insecurity.
