The U.S. Export-Import Bank has reapproved a $4.7 billion loan for a controversial LNG project by TotalEnergies in Mozambique. The project, set in the Afungi region beset by an Islamist insurgency, is tied to reported human rights violations, including a massacre of civilians. Originally $5 billion in 2019, this loan is the largest in the agency’s history, despite previous financing suspensions due to violence in the area.
The U.S. Export-Import Bank’s board has reauthorized a significant $4.7 billion loan for a controversial liquefied natural gas (LNG) project in Mozambique, reflecting a shift towards supporting fossil fuels under President Trump. This decision, announced recently, aims to back TotalEnergies SE in developing an LNG facility in the Afungi area, known for its severe Islamist insurgency and previous reports of atrocities, including a massacre of at least 97 civilians.
Originally, a $5 billion loan was granted in 2019, intended to bolster American jobs by facilitating the export of essential construction equipment and services. However, the financing was later adjusted to $4.7 billion, marking it as the largest deal in Export-Import Bank’s history. The project faced turmoil in 2021 when Islamist militants invaded the region, resulting in over 1,000 deaths and a halt to TotalEnergies’ operations. This disturbance led to the suspension of U.S. financing and other lenders withdrawing support.
A POLITICO investigation revealed that security forces assigned to the TotalEnergies project committed severe human rights violations, including abduction, torture, and killings of civilians. Judicial inquiries are ongoing into these incidents, although TotalEnergies has denied any misconduct involving its operations or security arrangements.
The reauthorization of the $4.7 billion loan by the U.S. Export-Import Bank for the Mozambique LNG project highlights ongoing tensions between energy development and human rights concerns in conflict regions. While the project promises job creation and economic benefits, its location in a conflict zone raises ethical issues, especially given reported atrocities linked to security forces protecting the facility. The future of this project remains uncertain amidst judicial investigations and a turbulent security environment.
Original Source: www.eenews.net
