The British government has announced it will no longer provide up to $1.15 billion in financing for TotalEnergies’ liquefied natural gas (LNG) project in Mozambique, citing concerns that the investment would not serve the UK’s national interests.

The decision comes after TotalEnergies, which holds a 26.5% stake in the $20-billion project in Cabo Delgado province, indicated plans to resume construction that was halted in 2021 following a violent jihadist attack that killed around 800 people. The French energy giant also requested $4.5 billion in cost overruns from Mozambique to cover delays linked to the suspension.

“While these choices are difficult, UK support for this project does not advance our national priorities,” Business Secretary Peter Kyle said in a statement. He added that the government remains committed to supporting British exporters and maintaining strong partnerships with Mozambique and other African countries.

The project, also involving ENI and ExxonMobil, could position Mozambique as a leading natural gas producer, potentially contributing up to 20% of Africa’s output by 2040, according to Deloitte. However, critics, including NGOs and environmental groups, have condemned the project for offering limited benefits to local communities—where more than 80% live below the $3 daily poverty line—and for its environmental impact.

TotalEnergies has signaled that, with Mozambique’s approval of a revised budget, it aims to restart production by 2029. Meanwhile, UK Export Finance (UKEF), the government agency overseeing the loan, has officially halted its financing.