The U.S. government has approved nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique, with a loan of $4.7 billion reapproved by the Export-Import Bank. The company needs further approvals from the UK and Netherlands to lift a force majeure that has been in place since 2021 due to security disturbances.
The United States has sanctioned nearly $5 billion in loan funding for TotalEnergies’ liquefied natural gas (LNG) project in Mozambique, as reported by the Financial Times. This funding comes from the U.S. Export-Import Bank (Exim), which has reapproved a loan amounting to $4.7 billion. Estevao Pale, Mozambique’s energy minister, confirmed this development to the Financial Times.
TotalEnergies is currently waiting for re-approvals from the United States, the United Kingdom, and Dutch export credit agencies in order to lift the force majeure declaration that has been in effect since 2021. The company enforced this declaration following an attack by Islamic State-linked militants on the town of Palma, near its operations in Cabo Delgado province.
Minister Pale expressed optimism regarding the expected reconfirmation of support from the UK and Netherlands. Meanwhile, TotalEnergies, Exim, and the White House did not provide immediate comments; efforts to contact Mozambique’s energy ministry were also unsuccessful. In February, TotalEnergies CEO Patrick Pouyanne conveyed that approval for financing the $20 billion LNG project was anticipated shortly.
In conclusion, the U.S. has approved a substantial loan to aid TotalEnergies in progressing their LNG project in Mozambique. With loans from multiple nations pending, the project’s future hinges on securing this funding following a protracted force majeure status due to security concerns. Minister Pale remains hopeful for a swift resolution to these financial approvals, allowing the project to move forward.
Original Source: www.tradingview.com
