London Court of Appeal has ruled that the state-run UK Export Finance (UKEF) funding of up to $1.15 billion for TotalEnergies-operated Mozambique LNG project is lawful, dismissing an appeal by Friends of the Earth.
London Court of Appeal has ruled that the state-run UK Export Finance (UKEF)’s funding of up to $1.15 billion for TotalEnergies-operated Mozambique LNG project is lawful, dismissing an appeal by Friends of the Earth.
The environmental campaign group had asked the court to rule that the funding was not compatible with the Paris Agreement on climate change. But the court has rejected the claim because it has concluded that the agreement was "only one of a range of factors" UKEF took into account when reaching the decision to fund the project.
The UKEF has committed to provide direct loans and guarantees to banks to support design, build and operation of the $20 billion Mozambique LNG project.
TotalEnergies has welcomed the ruling and Reuters cited its spokesperson as saying that the project "will deliver a range of social and economic benefits to Mozambique and is a key part of Mozambique's aim to diversify its economy”.
“TotalEnergies supports the goals of the 2015 Paris Agreement, which calls for reducing greenhouse gas emissions in the context of sustainable development and the fight against poverty.”
Meanwhile, the environmental campaign group described the ruling as "extremely disappointing" and said it is considering an appeal to the UK Supreme Court.
According to the
Global LNG Database®, the 12.88 MMT/Y Mozambique LNG export project's construction started by its main EPC contractor CCS JV (McDermott International, Ltd, Saipem and Chiyoda Corporation) in 2019 late.
The project was 21% complete just before suspension after a March 2021 attack on the town of Palma, on the doorstep of the project. In April 2021, TotalEnergies declared force majeure on the project and has removed all staff from the project’s site.
On 6 Oct. 2022, TotalEnergies’ CEO Patrick Pouyanne said that the operator hopes to lift a force majeure on the Mozambique LNG project in 2023, once it completes an audit on the security situation in the northeast region of Cabo Delgado.
TotalEnergies is under pressure from the Mozambican government to restart the project but Pouyanne has reminded that he would not send anyone back to the site until it was completely safe to do so, without fear of attack from militants who have caused havoc in the region over the past five years.
Follow Global LNG Info
