Organizations from the United States and Mozambique have filed a lawsuit against the U.S. EximBank for approving $4.7 billion (257 billion meticais) in financing for the liquefied natural gas (LNG) megaproject led by TotalEnergies in Area 1 of the Rovuma Basin, Cabo Delgado, without conducting the required environmental, economic, and social impact assessments.
In the case filed this week in U.S. court, Friends of the Earth (U.S.) and Justiça Ambiental (Mozambique) allege that EximBank fast-tracked its financial support for TotalEnergies, the operator of the project on the Afungi Peninsula in northern Mozambique, disregarding the violent conflict in the region and the serious human rights violations linked to the project.
“The project has displaced thousands of local residents, has been the site of alleged human rights violations, and will cause significant environmental destruction,” the organizations stated in a press release, criticizing the lack of public participation and the absence of U.S. Congressional involvement in the decision.
The funding, approved in March this year, comes at a time when the $20 billion megaproject is preparing to resume operations after a four-year suspension caused by terrorist attacks. President Daniel Chapo recently urged TotalEnergies to lift the “force majeure” clause and move forward with the project, which has an estimated annual production capacity of 13.1 million tonnes of LNG. According to the government, of the roughly $13 billion still needed to complete the development, $11.3 billion has already been secured, including the $4.7 billion confirmed by EximBank.
The lawsuit raises critical questions about the accountability of international financiers in upholding human rights and environmental protection in large-scale projects located in conflict zones.
Mozambique LNG, considered one of Africa’s largest LNG projects, is expected to reach an annual production capacity of 12.8 million tonnes in its initial phase. The project is seen as a strategic milestone for the Mozambican economy, with the potential to generate substantial revenue and elevate the country’s status in the global energy market.
The Mozambique LNG project includes the development of the Golfinho and Atum fields located in Offshore Area 1 and the construction of a liquefaction plant with two trains capable of producing 13.1 million tonnes per year. Area 1 contains over 60 trillion cubic feet (Tcf) of gas resources, 18 Tcf of which will be developed with the two initial trains.
Total E&P Mozambique Area 1, Ltd, a wholly owned subsidiary of TotalEnergies, operates the Mozambique LNG project with a 26.5% stake, alongside ENH Rovuma Area 1, S.A. (15%), Mitsui E&P Mozambique Area 1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
Source: Lusa
