TotalEnergies is awaiting a decision regarding a $4.7 billion loan from the US Export-Import Bank for its $20 billion Mozambique LNG project, which was halted due to militant attacks. Former President Trump’s recent appointments at Exim may facilitate this funding. CEO Patrick Pouyanne has expressed confidence in obtaining necessary approvals, despite previous challenges under the Biden administration.
TotalEnergies SE, the French energy giant, is awaiting a critical decision regarding financing from the United States Export-Import Bank for its $20 billion liquefied natural gas facility in Mozambique. This decision is anticipated on Thursday and pertains to the approval of a $4.7 billion loan originally agreed upon in 2019, prior to the suspension of construction due to security threats from Islamic State-linked militants.
Efforts to secure financing gained momentum with recent appointments made by former President Donald Trump at the Exim bank, aimed at bolstering U.S. energy dominance. These appointments include two senior officials necessary for achieving quorum on the board, alongside Bryce McFerran appointed as acting chief banking officer.
The forthcoming amendment of finance documents during a closed board meeting on March 13 is critical for TotalEnergies. According to CEO Patrick Pouyanne, this involves updating the contract with a revised completion date of 2030 to address delays. The approval of funding would be a significant milestone towards the revival of the Mozambique LNG project and the economic upliftment of the region, which has been on hold for an extended period.
Despite previous challenges, including failed attempts to secure loan renewals during the Biden administration, Pouyanne expressed confidence in receiving the necessary approvals, citing that over 40% of contracts have been awarded to U.S. companies. He emphasized the importance of ensuring the safety of workers returning to the site, highlighting that the prolonged halt has adversely affected project momentum.
Amid these developments, constraints were reported, including the cancellation of a supply contract in late 2023, as TotalEnergies and its partners had to minimize preparations for the project’s resumption, which once included the construction of a temporary camp.
In conclusion, TotalEnergies’ pursuit of crucial financing from the US Export-Import Bank for its Mozambique LNG project demonstrates the complexities of global energy initiatives. The long-standing delays due to security issues underscore the challenges faced in reviving vital economic opportunities for Mozambique. Nevertheless, recent developments and appointments at Exim indicate a possible pathway to secure funding and move forward with the project.
Original Source: financialpost.com
