US Approves $5 Billion Loan for TotalEnergies’ Mozambique Gas Project.
The US Export-Import Bank has approved a nearly $5 billion loan for a long-delayed liquefied natural gas (LNG) project in Mozambique, marking a significant step toward restarting construction under French oil major TotalEnergies. The approval clears a key financial hurdle for the $20 billion project, which was put on hold in 2021 due to violent unrest in the northern Cabo Delgado region.
The US had initially agreed to provide $4.7 billion in financing during Donald Trump’s administration, but the loan required re-approval after security concerns halted the project before any funds were disbursed. TotalEnergies CEO Patrick Pouyanne had anticipated US financing would be confirmed, with further approvals from the UK and Dutch export credit agencies expected in the coming months.
Mozambique’s Energy Minister, Estevao Pale, expressed confidence that the UK and Netherlands would also reconfirm their support. Mozambique LNG, in which TotalEnergies holds a 26.5% operating stake, was projected to turn the country into a major LNG producer. However, the insurgency led by Islamic State-linked militants brought development to a standstill. Security conditions have since improved, with partner company Mitsui announcing in December that final preparations were underway to resume construction following renegotiations with contractors.
Source: ARISETV
