TotalEnergies is confronting a legal challenge in the United States related to its $20bn Mozambique LNG project, after the U.S. Export-Import Bank (Exim Bank) approved a US $4.7bn loan to support the venture.
French environmental group Les Amis de la Terre filed a lawsuit in Washington, raising concerns over the legality of the loan and the composition of Exim Bank’s board of directors during the Trump administration.
The Mozambique LNG project, located in the gas-rich Cabo Delgado province, has been suspended since 2021 following a deadly attack in Palma by armed militants linked to the Islamic State. The violence led to the deaths of over 800 people, according to data from the Armed Conflict Location & Event Data Project (ACLED), and forced operator TotalEnergies to declare force majeure. The company has indicated that a decision on resuming construction could be made in the coming months.
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Diligence requirements
In its legal filing, Les Amis de la Terre argues that the financing approval process failed to meet environmental and economic due diligence requirements. The NGO also challenges the legitimacy of Exim Bank’s board appointments under the previous U.S. administration, alleging procedural violations.
The project has drawn criticism from civil society groups over its social and environmental implications. Local NGO Justiça Ambiental, a partner of Les Amis de la Terre, has described the gas developments in Cabo Delgado as “climate bombs,” citing the risks to communities and ecosystems.
Further controversy surrounds the conduct of Mozambican security forces assigned to protect the project. Eyewitness reports cited by Politico allege that abuses were committed against civilians during the 2021 conflict. In response, TotalEnergies has called for investigations, which are now being carried out by Mozambican judicial authorities and the national Human Rights Commission.