U.S. Approves Nearly $5 Billion Loan for TotalEnergies’ Mozambique LNG Project
The Trump administration has facilitated nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique through a reapproved loan by the U.S. Export-Import Bank. This funding aims to help lift the force majeure declared in 2021 due to security concerns. TotalEnergies anticipates further support from the UK and Netherlands while awaiting final approvals.
The Trump administration has confirmed the release of nearly $5 billion to assist TotalEnergies with its liquefied natural gas (LNG) initiative in Mozambique, as reported by the Financial Times. The U.S. Export-Import Bank (Exim) has reauthorized a loan of approximately $4.7 billion, as articulated by Mozambique’s energy minister, Estevao Pale.
TotalEnergies is currently awaiting loan approvals from the United States, United Kingdom, and Dutch export credit agencies to lift the force majeure status that has been in effect since 2021. Initially, this status was established after attacks by Islamic State-linked militants resulted in the takeover of Palma, a location adjacent to the company’s facilities in northern Cabo Delgado province.
Minister Pale expressed optimism regarding the anticipated reaffirmation of support from both the UK and Netherlands. However, TotalEnergies, Exim, and representatives from the White House have not yet responded to inquiries concerning the developments, nor was Mozambique’s energy ministry reachable for comment.
In February, CEO Patrick Pouyanne indicated that financing for the substantial $20 billion LNG project was anticipated to receive approval in the ensuing weeks.
In conclusion, the U.S. government has significantly contributed to the TotalEnergies LNG project in Mozambique through the reapproval of a substantial loan. With ongoing international support expected from additional countries, the project may proceed once the force majeure is lifted. The uncertainty surrounding the safety and stability of the region remains a key factor in moving forward.
Original Source: www.tradingview.com
