U.S. Approves $5 Billion Loan for TotalEnergies’ Mozambique LNG Project

The Trump administration has released nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique. The U.S. Export-Import Bank reapproved a $4.7 billion loan, while TotalEnergies awaits additional support from the UK and Dutch agencies to lift the force majeure that has been in place since 2021 due to security threats.

The Trump administration has sanctioned nearly $5 billion in financial assistance for a liquefied natural gas (LNG) project led by France’s TotalEnergies in Mozambique, as reported by the Financial Times. The U.S. Export-Import Bank (Exim) has recently reapproved a significant loan amounting to $4.7 billion for this initiative, as stated by Estevao Pale, the Minister for Energy in Mozambique.

TotalEnergies is currently in the process of securing loan re-approvals from the United States, the United Kingdom, and Dutch export credit agencies. The company has a force majeure in effect on the project, which has been ongoing since 2021. This measure was taken after militants associated with the Islamic State seized the town of Palma, located near the project site in Cabo Delgado province.

Pale expressed optimism that both the UK and Dutch authorities will reaffirm their financial support for the project. Meanwhile, TotalEnergies, Exim, and the White House have yet to respond to inquiries regarding this funding situation. Mozambique’s energy ministry was also unavailable for immediate comment. In February, TotalEnergies CEO Patrick Pouyanne indicated that the financing necessary for the $20 billion LNG project was anticipated to be approved imminently.

In summary, the United States has approved nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique. This initiative is crucial for ensuring the project’s advancement, which has faced delays due to security concerns in the region. Expectations are high for further support from the UK and Dutch export credit agencies to advance the project towards realization.

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