- The U.S. approved a $4.7 billion loan to restart TotalEnergies’ Mozambique LNG project, which aims to produce by 2030.
- The approval of British and Dutch export credit agencies remains critical to fully financing the $20 billion project, which targets Asian markets.
- Environmental and human rights groups expressed concerns, citing risks and ongoing violations at the project site.
The U.S. has approved a $4.7 billion loan to restart TotalEnergies’ stalled Mozambique LNG project. Jihadist attacks in 2021 halted the project, but liquefied natural gas production now targets 2030.
The U.S. Export-Import Bank (EXIM Bank) approved the loan, initially cleared in 2020, after making updates for delays caused by the attack in Cabo Delgado province, the project’s base. The loan supports TotalEnergies’ 26.5% stake in the estimated $20 billion project, primarily aimed at Asian markets.
TotalEnergies declared force majeure after the 2021 attack, halting all work on the gas project. The U.S. loan plays a central role in a broader financing plan involving British and Dutch export credit agencies. CEO Patrick Pouyanné emphasised that these approvals are vital for restarting the project. Liquefied natural gas production will begin between 2029 and 2030, following delays from the original 2028 timeline.
In 2024, accusations surfaced, alleging security forces abused their power while guarding the project after the attack. TotalEnergies stated that investigations found no credible evidence to support these claims.
The African Energy Chamber (AEC) welcomed the U.S. loan, calling it a significant boost for one of Africa’s most prominent energy investments. The AEC believes the project will transform Mozambique’s energy sector and benefit other African regions.
However, several environmental and human rights groups voiced strong opposition. Reclaim Finance and Friends of the Earth (Les Amis de la Terre) issued a joint statement urging financial institutions to withhold support for the project. They cited environmental risks and ongoing human rights violations at the site.
The Mozambique LNG project is one of Africa’s most significant energy investments. Partnerships include Mozambican companies and the Japanese group Mitsui, which holds a 20% stake. The project’s gas output targets Asian markets, which remain eager for its restart.
The recent U.S. loan approval could influence decisions by other financial institutions, mainly British and Dutch export credit agencies. Their approval remains critical for fully releasing the funds necessary to restart operations. The international financial market will monitor these decisions closely as they unfold.
The LNG project in Mozambique represents a crucial opportunity for the country’s economy and energy sector. Successfully reviving the project will reshape Mozambique’s energy landscape and strengthen the global energy market, particularly in Asia.
While the U.S. loan signals progress, the project’s future hinges on securing additional financing and addressing concerns from environmental and human rights groups. The following steps involve final approvals and ensuring compliance with broader financial and ethical standards before entire operations resume.