The U.S. Export-Import Bank has approved a $4.7 billion loan supporting TotalEnergies’ Mozambique LNG project. This financing is critical for the project’s revival after a four-year pause due to militant attacks. The approval has faced scrutiny from environmental advocates amid discussions of U.S. foreign aid reductions.
The U.S. Export-Import Bank’s board has authorized a significant $4.7 billion loan, marking the largest financing component for TotalEnergies SE’s Mozambique LNG project. This decision is crucial for reviving the project, which has been inactive for four years due to militant attacks linked to the Islamic State in the region. To recommence construction, ensuring worker safety and reinstating previously committed financing from export credit agencies are essential steps.
On March 14, 2025, it was reported that the board’s approval came after multiple recent appointments of the bank members by the Trump administration. TotalEnergies had initially sought loan approval before the conclusion of the Biden administration in January but was unsuccessful. The Financial Times highlighted that Mozambique’s Energy Minister, Estevão Pale, confirmed the loan’s approval following the board’s vote.
While financing has been approved, the decision has faced criticism from environmental groups. They argue that the loan supports a project enduring a state of force majeure due to ongoing conflict, especially as the U.S. government reduces foreign health aid. Notably, Kate DeAngelis, the economic policy deputy director for Friends of the Earth U.S., remarked about the dissonance between eliminating vital foreign aid and funding the fossil fuel industry.
It is noteworthy that over 40% of contracts awarded for the Mozambique LNG project have been allocated to U.S. companies and contractors. Patrick Pouyanne, TotalEnergies’ Chief Executive Officer, indicated a positive trend regarding the security landscape around the project site; however, he affirmed that while it is improving, it will not reach a state of perfection.
In summary, the U.S. Export-Import Bank’s approval of a $4.7 billion loan for TotalEnergies’ Mozambique LNG project is a pivotal development aimed at resuming construction after a four-year hiatus due to security issues. Despite the project’s potential economic benefits and U.S. contractor involvement, environmental concerns and the context of foreign aid cuts have prompted considerable criticism. The situation remains complex as stakeholders navigate safety and environmental considerations while pursuing energy development.
Original Source: financialpost.com
