Gas extraction worsened already dire situation in the North of Mozambique
Both ENDS is shocked by the dramatic news in the past days coming from Palma, Cabo Delgado, Mozambique. Our thoughts go to those who lost their lives or who are still missing, and their loved ones. Both ENDS is in close contact with our local partners to support them wherever we can. Many people are still missing, among whom members of farmers union UPC.
On the 24th of March, several hundred insurgents attacked the coastal town of Palma in northern Mozambique, located a few kilometers away from the onshore facilities of a US$20 billion gas project led by Total. The exact number of casualties remains unknown but dozens of people, including foreign nationals, are estimated to have been killed in the attack. For years, civil society organisations expressed their fears that the gas project would worsen the situation for local communities in an area that was already facing many difficulties, such as poverty and illegal trade. Since late 2017, the conflict in the area has increased with many insurgent attacks. The conflict has caused over 2,500 civilian deaths and contributed to the displacement of 668,000 as of the end of 2020, mostly women and children.
Broken promises
Local communities have so far not benefited from the gas project, to the contrary. Although the involved gas companies assured that the gas extraction would bring jobs and prosperity for the people in the region, unfortunately fisher folk and and farming communities are worse off than before the start of the project. Many have lost access
to fertile land and fishing grounds and have had to leave their homes. The compensation procedure is unclear and chaotic. When relocating people, the authorities have taken too little account of the social and geographic context, which resulted in fisher folk having been relocated inland where they can no longer fish. Also, conflicts emerged between local people and newcomers as local people had to make their already scarce land available to the newcomers.
Dutch support for the gas extraction
The Dutch government and Dutch companies are actively involved in the Mozambique LNG project. Dutch dredging company Van Oord recently moved its vessels to Palma to work on the offshore gas activities, but pulled back due to the latest attack. The export credit agency of the Dutch State, Atradius DSB, is currently deciding whether or not
to support the massive gas project with a loan guarantee of 660 million USD. It remains unclear why Atradius DSB has not yet provided the support while other export credit agencies from for example the UK, USA and Italy already have. Together with other Dutch NGOs, Both ENDS has filed a Freedom of Information request to get more clarity on the information used in the due diligence of Atradius DSB.
Dutch responsibility extends to the local people
Both ENDS has called on the Dutch government, Atradius DSB and Van Oord to do everything in their power to not only ensure the security of Dutch citizens in the area, but also that of local communities. After everyone is safe they need to think hard if they still want to be involved in this project. Both ENDS is in good contact with the Dutch actors and our local partners to ensure the safety and well being of everyone involved.
More information
Dossier text about the gas development in Mozambique
Read more about this subject
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Dossier /
Gas in Mozambique
In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.
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External link / 17 november 2021
Stop export support for fossil fuel project in Mozambique
Julio Bichehe Erneste of Farmers Union Cabo Delgado Mozambique (UPC) on a side event of COP26 in Glasgow, speaking about the negative impacts of export support for fossil fuel projects for local people and their enrironment, and about the need to support renewable energy projects instead.
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News / 21 juli 2020
Is the Netherlands insuring a controversial gas extraction project in Mozambique?
At the end of last week, oil and gas company Total announced that, through its export credit insurer Atradius DSB, the Dutch government is participating in a funding package for a controversial gas extraction project in Mozambique. The project, in which various Dutch and foreign companies are involved, is having a deep impact on the local population and the natural environment in the area. Which Dutch companies the government will be insuring is not yet clear.
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Press release / 19 mei 2021
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Amsterdam, 19 May 2021 – On 25 March, a day after violent attacks in northern Mozambique, the Dutch state decided to provide dredging company Van Oord with export credit insurance worth 900 million euros for its activities in the country. The company is conducting dredging operations for a highly controversial gas project that, according to Mozambican interest groups, is playing a prominent role in the escalating violence in the region. Civil society organisations Both ENDS, Milieudefensie and Oil Change International and their Mozambican partners are alarmed about the situation and have called the Dutch government and Dutch export credit agency Atradius DSB to account.
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Publication / 24 september 2024
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Publication / 29 oktober 2024
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News / 12 juli 2021
WOB applications relating to export support for gas project in Mozambique
At the beginning of this year, the Dutch government provided Dutch companies with export insurance worth 903 million euros to enable them to participate in a gigantic natural gas project in the north of Mozambique. Together with partners from Mozambique and the Netherlands, Both ENDS has been conducting a dialogue with export credit agency Atradius DSB and the responsible Ministries of Finance and Foreign Affairs on the possible financial, environmental and social risks of the gas project.
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News / 18 juni 2024
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The Dutch government threatens to blunder again by providing export support for TotalEnergies' controversial gas project in Cabo Delgado, Mozambique. This follows from an analysis of 9000 documents from FOI requests, commissioned by Milieudefensie and Both ENDS. Anne de Jonghe, Both ENDS: “When the export support was issued in 2021, critical voices were minimized, while TotalEnergies was heard and trusted. That should not happen again."
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The Climate lawsuit against Shell
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Event / 26 oktober 2023, 20:00
Debate: Fossil disaster in Mozambique
In 2021, the Dutch government provided a €1.000.000.000,- worth export credit support to Totals Mozgas project in Cabo Delgado, despite civil society warnings about human rights and environmental risks. The gas exploitation fueled a violent conflict, culminating in the Palma attack, displacing 800,000 people and killing 1,200 people.
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News / 22 november 2021
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Event / 3 november 2021, 16:45 - 18:00
UNFCCC COP 26 side event ‘Aligning export finance with the Paris Agreement: high time to phase out fossil fuels’
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News / 15 oktober 2021
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News / 3 juli 2024
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Press release / 18 november 2019
Press release: Government undermines its own climate policy with export credit insurance
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External link / 31 oktober 2021
A chance worth 1.5 billion euros to stimulate renewable energy
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