- U.S. Export-Import Bank approves $5 billion loan to support the restart of TotalEnergies’ $20 billion LNG project in Mozambique, previously halted due to regional unrest.
- Project aims to position Mozambique as a major global LNG producer, with renewed financing expected to trigger full construction resumption.
- Environmental and human rights groups raise concerns, citing security risks, social impacts, and environmental consequences.
The U.S. Export-Import Bank has approved a $5 billion loan to support the Mozambique LNG project led by French energy giant TotalEnergies, marking a major step toward restarting the stalled development. The loan approval revives a previous commitment made under the Trump administration but required reauthorization after security concerns halted progress in 2021.
The $20 billion natural gas project, located in northern Mozambique’s Cabo Delgado province, was put on hold following a violent insurgency in the region. Although the original $4.7 billion loan was approved several years ago, funds were never disbursed due to the suspension of construction amid escalating conflict. With improved regional security, the reapproved financing signals renewed confidence in the project’s viability.
TotalEnergies has been seeking reaffirmation of support from key international lenders, including the United States, the United Kingdom, and the Netherlands. These export credit agencies are critical to securing the broader financing needed to move forward. With the U.S. commitment now in place, attention turns to the UK and Dutch agencies to finalize their own re-approvals.
Mozambique LNG, in which TotalEnergies holds a 26.5% operating interest, is expected to transform Mozambique into a significant global exporter of liquefied natural gas. The project’s revival could bring substantial economic benefits to the southern African country, following years of delay due to instability. Partner companies have indicated that construction preparations are once again underway following recent contractor negotiations.
Despite the progress, the project continues to face criticism from environmental and human rights groups. Concerns have been raised about the potential social, environmental, and economic consequences of the development, with some advocacy groups arguing that the risks outweigh the benefits. Nonetheless, the renewed financial backing from the U.S. sets the stage for a full resumption of the ambitious energy initiative.
