Mozambique President Thanks Trump for $4.7 Billion LNG Project Funding

The President of Mozambique thanked U.S. President Trump for $4.7 billion in funding for a gas project that could create 40,000 jobs and produce 13 million tonnes of LNG per year. TotalEnergies seeks to resume operations conditional on improved security in Cabo Delgado, where an armed rebellion has posed significant challenges since 2017.

The President of Mozambique has expressed gratitude to U.S. President Donald Trump for the approval of $4.7 billion in funding for a significant natural gas project. This project is projected to generate 20,000 jobs in the United States and aims to produce 13 million tonnes of liquefied natural gas (LNG) annually, while creating a total of 40,000 new jobs.

In a message released by the Mozambican Presidency, President Daniel Chapo emphasized the importance of U.S. support for the Mozambique LNG initiative, which is seen as essential for global energy security and mutually beneficial partnerships between the two nations. The funding, approved by the U.S. Exim Bank, is crucial for enabling American businesses to engage in Mozambique’s energy sector.

Chapo also highlighted the total value of the Mozambique LNG project, estimated at $15 billion, underscoring its commitment to sustainable management of natural resources in southern and eastern Africa. The project aims to ensure benefits for local communities while also serving international partners.

TotalEnergies confirmed that they are finalizing the financing to resume their natural gas exploration in Cabo Delgado, following the Exim Bank’s endorsement. Despite currently being in a force majeure situation due to ongoing security challenges, the reaffirmation of financial support from banking partners is viewed as a critical step forward.

The liquefied natural gas project, intricately linked to regional stability, has been on hold since 2021 amidst security concerns stemming from armed rebellion in Cabo Delgado. The participation of Rwandan forces is therefore pivotal for the security necessary to resume operations. The total financing consists of contributions from various international banks, ensuring that project continuity remains achievable under appropriate security conditions.

The Mozambique LNG project represents a significant collaboration between Mozambique and the United States, with potential benefits for both nations. The financial backing from the U.S. Exim Bank is vital for job creation and energy development. Nevertheless, the successful resumption of the project is contingent on stabilizing the security situation in Cabo Delgado, reiterating the importance of international partnerships in achieving energy security and resource management.

Original Source: clubofmozambique.com