TotalEnergies Nears Completion of Financing for Mozambique LNG Project

TotalEnergies is nearing completion of $15 billion financing for its Cabo Delgado natural gas project, following the recommitment of Exim Bank’s $4.7 billion support. The project has faced delays since 2021 due to terrorist activities, impacting production timelines now expected to extend to 2029-2030. TotalEnergies remains committed to ensuring safety and operational success in Mozambique.

TotalEnergies is nearing the completion of $15 billion in financing for its natural gas project in Cabo Delgado, Mozambique. This funding is crucial for the project’s restart, which has been on hold since 2021 due to security issues stemming from terrorist attacks in the region. The Export-Import Bank of the United States (Exim Bank) reconfirmed its support, committing $4.7 billion to the overall financing, a significant step towards project resumption.

Maxime Rabilloud, TotalEnergies’ director for Mozambique, emphasized the importance of Exim Bank’s decision and noted that while the project remains in a state of force majeure, the confirmation of funding indicates progress. In addition to Exim Bank, Asian banks have also reaffirmed a total of $5 billion in financial support, with confirmations from European banks still awaited.

TotalEnergies has shifted its production timeline, now expecting natural gas production to commence in 2029-2030 due to ongoing delays. CEO Patrick Pouyanne initially aimed to restart the project in 2024, indicating that unforeseen issues have caused further postponements. In discussions with Mozambican president Daniel Chapo, Pouyanne assured that TotalEnergies remains committed to the project despite security challenges that have persisted in Cabo Delgado.

The gas exploitation initiative, primarily focused on supplying Asian markets, halted operations after a terrorist attack in 2021 that resulted in significant civilian casualties. TotalEnergies, holding a 26.5% interest in the project, collaborates with various partners, including local entities and Japan’s Mitsui, which holds a 20% share. Mozambique’s natural gas reserves in the Rovuma basin are recognized among the world’s largest, and the country has secured approval for three major development projects.

In conclusion, TotalEnergies is progressing towards finalizing significant financing for its natural gas project in Mozambique, despite current challenges. The involvement of Exim Bank and other financial institutions signifies crucial support that aims to facilitate the project’s resumption, contingent on improving security in Cabo Delgado. With ongoing collaboration among stakeholders, TotalEnergies maintains commitment to harnessing the vast natural gas resources of the region for international markets.

Original Source: clubofmozambique.com