The U.S. has approved nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique. This includes a $4.7 billion loan reapproved by the Export-Import Bank, with TotalEnergies awaiting further support from the UK and Netherlands. The project is currently hindered by security issues dating back to 2021.
The United States has recently disbursed nearly $5 billion in funding for TotalEnergies’ liquefied natural gas (LNG) project in Mozambique, as reported by the Financial Times. According to Estevao Pale, Mozambique’s Minister for Energy, the U.S. Export-Import Bank (Exim) has reapproved a substantial loan amounting to $4.7 billion for this initiative.
TotalEnergies is currently awaiting loan reaffirmations from the United States, the United Kingdom, and Dutch export credit agencies prior to lifting a force majeure that has been in effect since 2021. The company had declared force majeure on the $20 billion project following attacks by Islamic State-linked militants in April 2021, which led to the evacuation of their facilities in Cabo Delgado province.
Minister Pale expressed optimism regarding the reaffirmation of support from the UK and Dutch governments. He noted the anticipated responsiveness of these countries, but as of yet, TotalEnergies, Exim, and the White House have not provided comments on this matter. Furthermore, Mozambique’s energy ministry was unavailable for immediate inquiries.
In February, TotalEnergies’ CEO, Patrick Pouyanne, projected that the financing for the LNG project would be approved shortly as they navigate the necessary reaffirmations.
In summary, the U.S. has allocated nearly $5 billion for TotalEnergies’ Mozambique LNG project, with the Export-Import Bank’s reapproval of a $4.7 billion loan being pivotal. TotalEnergies seeks reaffirmation of support from the UK and Dutch credit agencies before lifting the force majeure declared due to security concerns. The project remains significant for Mozambique’s energy landscape and involves substantial international collaboration and investment.
Original Source: www.tradingview.com
