The African Energy Chamber (AEC) has strongly criticised the UK government’s decision to withdraw financial support from the Mozambique liquefied natural gas (LNG) project, calling it a blow to African energy justice.

“The AEC condemns the decision to withdraw, deeming the decision as not only a setback for Mozambique but for the entire continent. The withdrawal undermines African energy security, industrial ambitions and efforts to lift millions from energy poverty,” the Chamber said in a press release.

On December 1, the UK government cancelled a previously promised $1.15bn UK Export Finance (UKEF) loan in support of the Mozambique LNG project led by French oil and gas giant TotalEnergies (EPA/NYSE:TTE).

“After a detailed review, the UK government has decided to end UKEF’s participation in the project”, Secretary of State for the Department for Business and Trade Peter Kyle said in a statement. “Whilst these decisions are never easy, the government believes that UK financing of this project will not advance the interests of our country.”

The Netherlands withdrew an equivalent amount in export-credit guarantees from the project, but was not mentioned in the AEC statement. The guarantees had been issued through UKEF and the Netherlands’ Atradius Dutch State Business agencies, respectively, as part of a wider $20bn financing package backed by export-credit agencies from Japan, France, Italy, South Africa and the United States. UKEF and Atradius said they will reassess financing conditions if security assessments improve and the project meets international environmental and social benchmarks.

According to the AEC, the UK’s decision reflects a pattern in which Western climate-driven policy priorities override the development needs of African countries.

The Mozambique LNG project had been seen as a game-changer for the region, with potential to produce as much as 13mn tonnes per year (tpy) of LNG - enough to power industries, drive local growth, and provide reliable electricity to millions in a region still grappling with energy poverty, the AEC said.

The megaproject has been stalled for over four years since Islamist insurgents attacked the project site on the Afungi Peninsula in Cabo Delgado province in March 2021. In October, TotalEnergies and its partners, Japan’s Mitsui & Co. (TSE:8031), India’s ONGC Videsh and Bharat Petroleum, and Mozambican national energy company ENH, informed the Mozambican government of their decision to lift force majeure to restart the project. TotalEnergies holds a 26.5% stake and operatorship.

The UK’s withdrawal came despite improved security in northern Cabo Delgado and a revised development plan proposed by TotalEnergies, the Chamber pointed out. UKEF cited newly assessed risks as justification for abandoning its support for the project, even though the US Export‑Import Bank recently reinstated funding after reviewing the same risks.

The AEC called for international investment policies that respect Africa’s development priorities, timelines and sovereign right to build energy infrastructure that supports both economic growth and social welfare.

“Withdrawing support from Mozambique LNG is a betrayal of Africa’s right to energy security and a slap in the face of progress for the continent’s millions living without reliable power,” AEC’s Executive Chairman NJ Ayuk said in the press statement.

“This moment should serve as a call to action: it serves as a stark reminder that Africa’s energy future cannot rely solely on foreign financing or conditional support. Mozambique LNG, and projects like it across the continent, must be championed by Africans for Africans, with a focus on responsible development, job creation and the eradication of energy poverty.”