The Trump administration approved a $4.7 billion loan for TotalEnergies’ Mozambique LNG project, previously halted due to security issues. Despite regional violence and political unrest, TotalEnergies aims to resume operations with this renewed backing. The project previously secured substantial commitments from various financial institutions in 2020.
TotalEnergies has received renewed support from the Trump administration regarding its contentious gas megaproject in Mozambique. The US Export-Import Bank (EXIM) approved a $4.7 billion loan for the Mozambique LNG project on March 13. This financing is pivotal for reviving operations that were previously halted due to security concerns following a jihadist attack in the vicinity of the site, which had led to the suspension of the initial loan in 2021.
The Mozambique LNG project is designed to develop substantial liquefied natural gas reserves located in northern Mozambique, East Africa. Although the area continues to experience violence and political unrest—particularly concerning allegations of election tampering ahead of the October 2024 elections—TotalEnergies aims to secure further loans and guarantees to resume its operations. The company holds a 26.5% stake in the project, partnering with local and Asian investors.
As of 2020, 31 financial institutions had committed nearly $15 billion to the Mozambique LNG project, though TotalEnergies has not disclosed how much funding is currently reaffirmed or available. The situation remains fluid, with international stakeholders wary of the ongoing instability in the region.
The Trump administration’s backing of TotalEnergies’ Mozambique LNG project represents a significant reactivation of funding that had been stalled due to security concerns. Despite the ongoing regional violence and political instability, TotalEnergies is pursuing financial backing to resume operations alongside its partners. The future of the project remains contingent on addressing these critical security challenges.
Original Source: www.lemonde.fr
