TotalEnergies SE’s $20 billion liquefied natural gas project in Mozambique is awaiting a decision on a $4.7 billion loan from the US Export-Import Bank.
This was announced by TotalEnergies via a report published by Bloomberg on Wednesday, adding that Mozambique’s project is up for approval by the US Export-Import Bank on Thursday.
Patrick Pouyanne expressed that he was 100% confident the required approvals would be granted.
“Most of the contracts have been awarded to US companies, US contractors,” he added.
The Mozambique LNG project was placed on hold four years ago due to extremist attacks in the area linked to the Islamic State.
The $4.7 billion loan was previously approved by US Exim in 2019 during President Donald Trump’s first term, and after such a protracted delay, new approvals are necessary.
Pouyanne earlier commented on the project’s delays in an interview at CERAWeek in Houston on Tuesday, stating:
“It’s just a matter to amend this contract to put a new completion date in 2030.”
“Now you have a functional US Exim — President Trump has decided to put in place a new board,” he added.
In the past two weeks, Trump has appointed several individuals to the bank, reinforcing his emphasis on US energy dominance and support for oil and gas workers.
He appointed commodity trader Bryce McFerran, who began his career at Morgan Stanley, as Exim’s acting chief banking officer and appointed two senior officials to establish a quorum on the company’s board.
However, Exim’s approval of an amendment of finance documents for Mozambique LNG is one of two scheduled items on a closed March 13 board meeting agenda.
An Exim spokesperson responded to the situation, saying that the bank has been conducting a fresh review of proposed changes to the terms of financing of its ongoing Mozambique LNG project.
At the end of the Biden administration, Total attempted and was unsuccessful in renewing the loan approval.
It engaged a lobbyist in Washington, and Pouyanne requested assistance through letters to senior White House advisers and cabinet secretaries.
TotalEnergies has already invested billions of dollars in the site, so securing the crucial funding would be a significant step toward resuming the project.
The project would provide the southeast African country, which has been anticipating the projected economic benefits, renewed hope for economic reform.
Export credit agencies in the Netherlands and the United Kingdom have yet to approve their respective loans.
