Trump Administration Supports TotalEnergies’ Mozambique LNG Project with $4.7 Billion Loan

The Trump administration has approved a $4.7 billion loan for TotalEnergies’ Mozambique LNG project, enabling its potential restart. Initially approved in 2020 but halted in 2021 after violence, TotalEnergies seeks financial support amid ongoing regional instability. The company had previously secured nearly $15 billion in loan agreements from various institutions.

The Trump administration has provided significant support for TotalEnergies through the approval of a $4.7 billion loan from the US Export-Import Bank (EXIM) for the Mozambique LNG project. This approval, renewed on March 13, enables TotalEnergies to potentially resume its controversial project aimed at tapping into liquefied natural gas reserves in northern Mozambique. TotalEnergies did not dispute the information when contacted.

Initially approved in 2020 during Donald Trump’s presidency, the loan was temporarily halted in 2021 following a jihadist attack near the project’s industrial site. Despite ongoing violence and the political instability linked to the upcoming October 2024 presidential elections in Mozambique, TotalEnergies, which holds a 26.5% stake in the LNG project alongside Mozambican and Asian partners, remains optimistic and is seeking financial support to restart operations.

By 2020, a total of 31 public and private financial institutions had committed nearly $15 billion in loan agreements for the Mozambique project. However, TotalEnergies has not disclosed the current status of these commitments, leaving uncertainty regarding the financing required to move forward with the project.

In summary, the Trump administration’s recent backing of TotalEnergies’ Mozambique LNG project through a substantial loan approval highlights the ongoing complexities surrounding the endeavor. Despite the challenges posed by regional violence and political turbulence, TotalEnergies is striving to secure necessary financing to reinstate the project.

Original Source: www.lemonde.fr