– French multinational shows signs of desperation as funding freeze threatens 25% of total investment
By MOZTIMES
Maputo (MOZTIMES) – TotalEnergies has requested to join a legal case brought by environmental organisations before a court in Washington DC, United States, aimed at halting the US government’s funding for the gas exploration project in Cabo Delgado.
The lawsuit was filed by Friends of the Earth U.S. and Justiça Ambiental/Friends of the Earth Mozambique, represented by the organisation EarthRights International. It challenges the approval of a US$4.5 billion loan by the US Export-Import Bank (EXIM-Bank) for the Mozambique LNG Project. The NGOs argue that the funding approval is unlawful, claiming that the “project is surrounded by violent conflict and will cause significant environmental destruction.”
TotalEnergies, the operator of the Mozambique LNG Project and holder of approximately 26.5% of the consortium’s shares, was not initially named as a defendant in the case, which targets the US government. However, according to sources familiar with the matter, the French multinational submitted a request to join the proceedings, which was granted, with the aim of supporting the US government in defending the financing, estimated to account for around 25% of the project’s total investment needs.
The same sources confirmed that TotalEnergies has been admitted as a party to the proceedings, and its lawyers are currently reviewing the case documentation. Through its Mozambican subsidiary, the company intends to counter claims that the Mozambique LNG Project is fueling the insurgency in Cabo Delgado.
The environmental organisations, drawing on analysis by experts on the insurgency, argue that the project fuels the conflict in multiple ways. These include diverting government security forces to protect project infrastructure, leaving nearby communities vulnerable, and excluding local populations from the venture's benefits, factors that, according to the NGOs, foster frustration and create a fertile ground for support for the insurgents.
The legal action could delay the disbursement of funds and, as a result, postpone the announcement of the project’s restart, initially expected in the third quarter of 2025. (MT)
