The Trump administration has reapproved a $4.7 billion loan for TotalEnergies’ Mozambique LNG project, which seeks to exploit natural gas reserves despite ongoing regional violence and political unrest. Initially granted in 2020, the funding was frozen in 2021 due to security concerns. TotalEnergies aims to secure additional financing while addressing challenges related to the project’s controversial nature.
The Trump administration has provided a crucial endorsement for TotalEnergies by approving a $4.7 billion loan for its Mozambique liquefied natural gas (LNG) project. This financial support from the U.S. Export-Import Bank (EXIM) is pivotal for reviving a controversial initiative aimed at exploiting LNG reserves in northern Mozambique, as reported by the Financial Times and Bloomberg.
Originally approved in 2020, this funding was suspended in 2021 following violent jihadist attacks near the project’s industrial site. Despite ongoing regional violence and political instability tied to concerns over the upcoming October 2024 presidential elections, TotalEnergies, which holds a 26.5% stake in the project, remains optimistic about securing the necessary financing to resume operations. To date, 31 financial institutions have agreed to finance agreements totaling nearly $15 billion, although TotalEnergies has not clarified how much of that funding has been secured at this time.
In summary, the endorsement from the Trump administration represents a significant lifeline for TotalEnergies’ Mozambique LNG project amidst ongoing challenges. Despite previous financing setbacks and prevailing security and political issues in the region, TotalEnergies continues to pursue opportunities for financial backing to advance the initiative. The approval of this loan by EXIM exemplifies the complexity of international energy projects, particularly in volatile regions.
Original Source: www.lemonde.fr
