TotalEnergies is close to a decision on a $4.7 billion loan for its Mozambique LNG facility from the US Export-Import Bank. The project has faced delays since it halted due to security issues four years ago. Recent appointments by Trump aim to expedite financing approvals, which are crucial to reviving the project and boosting Mozambique’s economy.
TotalEnergies SE is nearing a decision regarding a $4.7 billion loan for its $20 billion liquefied natural gas facility in Mozambique, with significant financing being considered by the US Export-Import Bank. The project has previously experienced delays, having halted four years ago due to security issues linked to nearby militant activities.
Originally approved in 2019 during President Trump’s administration, the loan now requires new approvals due to the extended time elapsed. Recent appointments made by Trump at the Export-Import Bank aim to support US energy jobs and establish a quorum on the board, facilitating this financing decision.
An amendment to the financing documents is itemized for discussion in the upcoming board meeting. TotalEnergies CEO Patrick Pouyanne stated that rectifying project timelines is essential, emphasizing the need for a new completion date of 2030. The approval would not only assist TotalEnergies in restarting the project but also uplift the economic prospects of Mozambique, which has awaited these developments for years.
Subsequent loan approval must still come from UK and Netherlands export credit agencies. An Exim spokesperson confirmed that renewed review processes are underway for the Mozambique LNG project’s financing terms.
Past efforts by Total to secure loan approval during the Biden administration faced setbacks, prompting them to engage lobbyists and write to key officials. With more than 40% of contracts awarded to US firms, Pouyanne expressed confidence in getting the needed commitments.
TotalEnergies is on the brink of securing crucial financing for its Mozambique LNG facility, with a $4.7 billion loan from the US Export-Import Bank under consideration. The approval is vital for restarting construction and economic renewal in the region, especially after the project’s delays due to security concerns. The situation underscores the importance of renewed support within the current administration in fostering energy initiatives and stability in Mozambique.
Original Source: financialpost.com
