The President of Mozambique thanked President Trump for a $4.7 billion funding approval for the Mozambique LNG project, which aims to create 40,000 jobs, including 20,000 in the US. The project is seen as critical for energy security and responsible resource management, although security issues in Cabo Delgado remain a concern for its resumption.
The President of Mozambique has expressed gratitude towards President Trump for approving $4.7 billion in funding for a significant natural gas project. This funding is pivotal as it is expected to create approximately 20,000 jobs in the US while facilitating the Mozambique LNG project, which aims to produce 13 million tonnes of LNG annually and generate a total of 40,000 new jobs in Mozambique and abroad.
In a message shared by the Mozambican Presidency, Daniel Chapo highlighted how this support is essential for advancing the Mozambique LNG project and alongside fostering energy security through a strengthened partnership between the two nations. The project, valued at $15 billion, is also a commitment to safeguarding Africa’s natural resources, promoting responsible development to ensure local and international benefits.
TotalEnergies recently indicated that financing for resuming the LNG exploration project in Cabo Delgado is nearing completion, following Exim Bank’s endorsement of the funds. The Director for Mozambique noted that this financing represents a critical step in the project’s future. While the project remains on hold due to ongoing security concerns arising from regional violence, efforts are underway to reestablish safety which is crucial for resuming operations.
TotalEnergies is overseeing the construction of a plant in Afungi, near Palma. The company has faced challenges since 2021 due to terrorist activities in the area that prompted a force majeure declaration leading to the withdrawal of its personnel. The broader financing for this project includes commitments from various international banks totaling around $15 billion, with pending confirmations from some European banks. Cabo Delgado has faced an armed conflict since 2017, triggering a humanitarian crisis and significant displacement among the local population.
In summary, the approval of $4.7 billion in funding for the Mozambique LNG project is anticipated to create thousands of jobs in both Mozambique and the US. The project highlights the importance of international cooperation in energy security and responsible resource management. However, security challenges in Cabo Delgado continue to pose risks, impacting project timelines and necessitating continued efforts to ensure safety and stability in the region.
Original Source: clubofmozambique.com
