French energy major TotalEnergies is facing a legal challenge over its Mozambique LNG project, after a $4.7 bn (EUR4.34 bn) loan was granted by the Export-Import Bank of the United States (Exim Bank). Non-governmental organisation Les Amis de la Terre announced that it had filed a lawsuit in Washington, contesting both the legality of the financing approval and the composition of the US agency’s board of directors. The legal action comes as operations at the gas site in northern Mozambique have been suspended since 2021.
Gas project halted after major attack
The Mozambique LNG project, led by a consortium headed by TotalEnergies, represents a total investment estimated at $20 bn (EUR18.48 bn). Production was scheduled to start at Afungi, but an armed attack in Palma in 2021 brought the construction to a halt. The incident, attributed to a group affiliated with the Islamic State organisation, resulted in more than 800 deaths, according to the Armed Conflict Location & Event Data Project (Acled), and also affected project subcontractors.
After invoking force majeure, TotalEnergies stated its intention to restart the activity, indicating that a final decision on resuming work could be made during the summer. The project is located in the Cabo Delgado province, an area of high gas potential where significant natural gas reserves were discovered in the 2010s.
Legal challenge and investigations into abuses
The challenge brought by Les Amis de la Terre targets the loan approval process, alleging the absence of required environmental studies and economic assessments. The NGO is also contesting the appointment of the Exim Bank’s board of directors under the presidency of Donald Trump. Additionally, the Cabo Delgado region has seen serious allegations against Mozambican armed forces responsible for security at the gas site. According to testimonies gathered by Politico, deadly abuses were allegedly committed against villagers during the crisis period.
Investigations have been launched by Mozambican judicial authorities and the Mozambique Human Rights Commission. TotalEnergies has stated it requested these investigations to clarify the reported events.
Positions of the stakeholders involved
A separate legal procedure is also underway in France, targeting TotalEnergies for involuntary manslaughter. This complaint, filed by survivors and families of victims of the Palma attack, accuses the group of failing to guarantee their safety. Local NGOs, such as Justiça Ambiental, partners of Les Amis de la Terre, have described the province’s gas projects as “climate bombs” while highlighting the social impact of ongoing developments.
A spokesperson for the Exim Bank told Agence France-Presse that the institution does not comment on ongoing litigation, stating that “the bank continues to operate in compliance with all applicable laws and regulations”.
