The U.S. government has re-approved nearly $5 billion in funding for the massive Mozambique liquefied natural gas (LNG) project led by France’s TotalEnergies, marking a crucial step in reviving the long-delayed initiative.
The Financial Times reported that the U.S. Export-Import Bank (Exim) on Thursday reauthorized a $4.7 billion loan, initially approved in 2020 during President Donald Trump’s first term.
In an exclusive statement to the Financial Times on Thursday, Mozambique’s Minister for Energy, Estevão Pale, welcomed the decision, saying it would strengthen U.S. leadership in the development of a project that “will significantly help global energy security.” He added, “We are deeply grateful for President Trump and the American people’s support for this important LNG project.”
The Mozambique LNG project, valued at $20 billion, has faced multiple setbacks, including a force majeure declared by TotalEnergies in April 2021 following an Islamic State-linked attack in the Cabo Delgado province near the facilities of the French energy giant.
The Exim loan is a critical part of the financing package, but TotalEnergies is still awaiting loan reconfirmation from the UK and Dutch export credit agencies before lifting the force majeure.
While the UK government reportedly indicated interest in February to withdraw $1.15 billion in public funds from the controversial project, Exim’s decision could pressure it and other partners to maintain their financial commitments.
The delay in funding approvals has already pushed the project’s completion date to 2029 or 2030, contingent on when remaining partners finalize their financial support.
The Mozambique LNG project aims to tap into over 65 trillion cubic feet of natural gas reserves in the Rovuma Basin, offshore Mozambique.
The first phase involves developing three fields in the Mamba complex and constructing two onshore liquefaction trains, each with an annual capacity of 7.6 million tonnes of LNG.
TotalEnergies CEO Patrick Pouyanne had expressed confidence earlier on March 13 that the financing approvals from the US agency would proceed as planned, and the Exim decision aligns with those expectations.
As the project awaits final re-approvals from other key stakeholders, its potential to transform Mozambique into a major global LNG supplier remains high.
