Crédit Agricole has announced that it will not finance two major liquefied natural gas (LNG) projects, including the Rovuma LNG project in Mozambique, led by majors Exxon Mobil and Eni. This decision was motivated by the bank’s commitments to abandon financing new fossil fuel projects, following pressure from environmental groups to redirect investments towards more sustainable sectors.
Other banks, such as Barclays, HSBC and BNP Paribas, have already restricted financing to the oil and gas sector due to concerns about global warming. Crédit Agricole has also announced that it will not finance the LNG project in Papua New Guinea, backed by TotalEnergies, Santos and Exxon Mobil.
Crédit Agricole’s decision could significantly affect the project’s development schedule, as the bank was the original financial advisor for the project. Exxon Mobil and TotalEnergies have not yet responded to Reuters’ requests for comment.
Lucie Pinson, from Reclaim Finance, said that the decision not to finance the project is a serious blow to it and to TotalEnergies, and could jeopardize its financing capacity, especially in relation to the LNG export facility in Papua New Guinea.
