The President of Mozambique has thanked the US for $4.7 billion approved for a liquefied natural gas project that aims to create 20,000 jobs in the US and 40,000 in Mozambique. The project is vital for global energy security and responsible resource management. TotalEnergies reports that financing for the project is nearly closed, pending security improvements due to ongoing unrest in Cabo Delgado.
The President of Mozambique has expressed gratitude to the President of the United States for the approval of $4.7 billion in funding for a significant natural gas project. This project is poised to create 20,000 jobs in the United States and an additional 40,000 jobs in Mozambique itself, showcasing its potential impact on employment and economic growth.
According to President Daniel Chapo, the Mozambique LNG project, expected to yield 13 million tonnes of liquefied natural gas annually, is essential for enhancing global energy security. He noted that this backing facilitates US company participation in Mozambique and promotes a robust bilateral partnership between the two nations.
Moreover, President Chapo emphasized that the project represents a commitment to the responsible management of southern and eastern Africa’s natural resources, ensuring these benefits reach local communities. He stated the importance of pursuing responsible development to enhance the livelihoods of both local populations and global partners.
In light of the situation, oil company TotalEnergies indicated that financing arrangements for the LNG megaproject in Cabo Delgado are nearing completion following Exim Bank’s endorsement. TotalEnergies’ director for Mozambique, Maxime Rabilloud, acknowledged the importance of Exim Bank’s support as a critical step for the project, which has still not resumed operations due to an ongoing state of force majeure.
The Mozambique LNG project, valued at approximately $15 billion, has been stalled since 2021 due to security challenges related to armed insurgency in Cabo Delgado. Rabilloud also mentioned that additional financing support from international banks had been reaffirmed to ensure the project’s resumption, contingent upon restoring security facilitated by foreign military support in the region.
The region has faced turmoil since October 2017 due to an armed rebellion resulting in numerous casualties and significant humanitarian displacement, emphasizing the need for stable conditions for project continuation.
In summary, the approval of $4.7 billion in funding for the Mozambique LNG project by the US Exim Bank is a crucial development with significant economic implications. It not only promises to create employment opportunities in both the United States and Mozambique but also aims to enhance global energy security. As TotalEnergies works towards resuming operations, the project remains contingent upon the stabilization of the Cabo Delgado region, which has been afflicted by conflict since 2017.
Original Source: clubofmozambique.com
