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

The Trump administration has approved a $4.7 billion loan for TotalEnergies’ Mozambique LNG project through the U.S. Export-Import Bank. This funding aims to restart operations, which were previously halted due to security issues. Despite ongoing instability in the region, TotalEnergies is optimistic about leveraging loans and financial guarantees to advance the project.

TotalEnergies received a notable endorsement from the Trump administration, reflecting strong support from the U.S. Export-Import Bank (EXIM). On March 13, the EXIM approved a substantial loan of $4.7 billion to facilitate TotalEnergies’ Mozambique LNG project, as reported by the Financial Times and Bloomberg. TotalEnergies did not refute these claims when contacted.

This financing will enable the resumption of the contentious Mozambique LNG project, which focuses on tapping into liquefied natural gas reserves in northern Mozambique, East Africa. Originally approved in 2020, this financial support was temporarily halted in 2021 due to a jihadist attack near the industrial site.

Despite ongoing violence and political instability, particularly concerning the October 2024 presidential elections, TotalEnergies remains optimistic about securing additional financial backing to reactivate operations. As of 2020, a total of 31 public and private financing institutions had previously committed nearly $15 billion in loans, although TotalEnergies has not clarified how much of this is currently finalized.

In summary, the Trump administration’s affirmation of a $4.7 billion loan for TotalEnergies underscores the critical support for the Mozambique LNG project amidst geopolitical and security challenges. The resumption of this project holds significance for both TotalEnergies and economic development in the region, despite uncertainties linked to ongoing violence and political dynamics.

Original Source: www.lemonde.fr