The Trump administration has released nearly $5 billion for TotalEnergies’ LNG project in Mozambique, reapproving a $4.7 billion loan. TotalEnergies awaits loan re-approvals from the US, UK, and Netherlands to lift a force majeure declared due to security issues. Minister Pale is optimistic about confirming support from these nations.
The Trump administration has authorized nearly $5 billion in funding for TotalEnergies’ liquefied natural gas (LNG) project in Mozambique. This move follows the reapproval of a $4.7 billion loan from the U.S. Export-Import Bank as confirmed by Mozambique’s energy minister, Estevao Pale, reported by the Financial Times.
TotalEnergies is currently waiting for additional loan re-approvals from U.S., UK, and Dutch export credit agencies to lift a force majeure declared in 2021. This declaration was made after attacks by Islamic State-linked militants in Palma, which is close to TotalEnergies’ facilities in Cabo Delgado.
Minister Pale is optimistic about reconfirmations of support from the UK and Netherlands. In the meantime, TotalEnergies, Exim, and the White House have yet to provide comments, while Mozambique’s energy ministry was also unreachable for immediate inquiries. CEO Patrick Pouyanne indicated in February that financing approvals for the $20 billion LNG project were anticipated soon.
The U.S. has released significant funding to support TotalEnergies’ lagging LNG project in Mozambique, which has faced challenges due to security concerns in the region. The reapproved loan could facilitate the resumption of operations, subject to additional approvals from other nations. TotalEnergies aims to secure this financing and lift the existing force majeure status to progress with the project successfully.
Original Source: www.tradingview.com
