The Trump administration has re-approved a $4.7 billion loan to TotalEnergies for its Mozambique LNG project, despite ongoing violence and political instability in the region. This financing aims to restart the controversial project, which faced delays following a jihadist attack. TotalEnergies remains hopeful for further financial support to resume operations.
The Trump administration has provided substantial support for TotalEnergies through the re-approval of a significant loan. On March 13, the U.S. Export-Import Bank (EXIM) sanctioned a $4.7 billion (€4.3 billion) loan, enabling the French multinational to progress the Mozambique LNG project. TotalEnergies has acknowledged the information but has not offered additional comments.
The Mozambique LNG project, aimed at tapping into liquefied natural gas reserves in northern Mozambique, has faced considerable scrutiny. Previously, in 2020, EXIM had approved a similar financial package, which was subsequently frozen due to a jihadist attack near the project site. Despite ongoing violence and concerns over political instability in the region, TotalEnergies remains optimistic about securing additional funding.
With aspirations to resume operations, TotalEnergies is the primary stakeholder in Mozambique LNG, holding a 26.5% share, alongside various local and Asian partners. By 2020, financial agreements worth nearly $15 billion had been established among multiple public and private institutions, although the current status of these agreements remains unclear as TotalEnergies has not provided specific figures.
In summary, the Trump administration’s renewed backing for TotalEnergies’ Mozambique LNG project through the $4.7 billion loan reflects a crucial step towards the project’s advancement despite existing regional tensions. TotalEnergies’ persistence in seeking financial backing highlights its commitment to resuming operations, even amid challenges posed by instability and prior disruptions in financing. The firm’s main involvement underscores its strategic interest in Mozambique’s natural gas reserves and the potential economic benefits that could arise from the project’s successful continuation.
Original Source: www.lemonde.fr
