Mozambique LNG: UK Export Finance Withdrawal Debate
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Peter Kyle
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Mozambique LNG: UK Export Finance Withdrawal
Peter Kyle Excerpts(1 day, 7 hours ago)
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The Secretary of State for Business and Trade (Peter Kyle)
In 2020, the Government committed UK Export Finance support for the Mozambique liquified natural gas 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 have 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. While these decisions are never easy, the Government believe 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 remain 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.
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