Mozambique’s President Thanks US for Funding LNG Project

The President of Mozambique thanked the US President for $4.7 billion in funding for the Mozambique LNG project, expected to create 40,000 jobs. The project emphasizes global energy security and responsible resource management. TotalEnergies is nearing financing closure despite ongoing security issues in Cabo Delgado, where armed conflict has resulted in significant humanitarian challenges.

The President of Mozambique expressed gratitude toward the United States President for the approval of $4.7 billion in funding for the Mozambique LNG project. This significant investment is projected to generate 20,000 jobs in the United States, among a total of 40,000 jobs in Mozambique. Daniel Chapo emphasized the importance of this project for global energy security and the partnership between the two nations.

Chapo’s message highlighted that the Mozambique LNG project, valued at $15 billion, reflects a commitment to responsibly utilizing the natural resources found in southern and eastern Africa. He underscored that fostering responsible development will ensure local communities benefit while serving global partners.

Oil company TotalEnergies has indicated that financing for the natural gas exploration project in Cabo Delgado is nearly finalized following the US Exim Bank’s endorsement. TotalEnergies’ Mozambique director, Maxime Rabilloud, noted that while the project is still under force majeure due to security concerns, securing funding is a pivotal step towards resumption.

Rabilloud reiterated that the total financing required for the project amounts to $15 billion, with the US Exim Bank contributing significant funds. He indicated that various international banks have reconfirmed their commitment, with only the confirmation from European banks still pending. The resumption of the project additionally depends on stabilizing security in the region, aided by Rwandan armed forces.

The Cabo Delgado region has faced ongoing armed conflict since October 2017, resulting in a humanitarian crisis that has displaced over a million individuals and incurred thousands of fatalities.

In summary, the $4.7 billion funding for the Mozambique LNG project represents a collaborative effort between the United States and Mozambique, aiming to enhance job creation and energy security. The initiative underscores the importance of sustainable resource management in Africa while addressing security challenges in the Cabo Delgado region. As TotalEnergies prepares to resume operations, cooperation with international financial institutions remains crucial for the project’s future.

Original Source: clubofmozambique.com