Mozambique’s President praised President Trump for approving $4.7 billion for a LNG project aimed at creating 20,000 jobs in the US and enhancing global energy security. The project, valued at $15 billion, underscores responsible resource management, amid ongoing challenges in Cabo Delgado due to armed conflict.
The President of Mozambique expressed gratitude to his US counterpart for the approval of $4.7 billion funding for a significant natural gas project expected to create 20,000 jobs in the United States. In a message conveyed to Donald Trump, President Daniel Chapo highlighted the project’s capacity to produce 13 million tonnes of liquefied natural gas (LNG) annually and emphasized its potential to create a total of 40,000 new jobs.
Chapo noted that US companies’ participation in the Mozambique LNG project would contribute to global energy security, solidifying the partnership between the two nations. The project, which is valued at $15 billion, demonstrates a commitment to responsibly managing the natural resources of southern and eastern Africa. Chapo underscored the importance of ensuring that local populations and global partners equally benefit from these resources.
Oil company TotalEnergies announced the near-finalization of funding to resume the LNG megaproject in Cabo Delgado, following the endorsement from the US Exim Bank. Although the project remains on force majeure status, Rabilloud, TotalEnergies’ director for Mozambique, affirmed that reconfirmation of financing is vital for the project. He stated that the decision by Exim Bank marked a critical step towards the resumption of operations.
TotalEnergies, as the leader of the Area 1 consortium, is tasked with developing a plant in Afungi to produce and export natural gas. However, the project has been suspended since 2021 due to terrorist activities in Cabo Delgado, necessitating the invocation of the force majeure clause. The resumption of activities will also rely on the restoration of security, supported by the Rwandan armed forces.
As of March 13, the management of Exim Bank reconfirmed $4.7 billion financing for Mozambique, while the project financing consortium secured additional commitments from Asian banks totaling approximately $5 billion. Funding confirmation from European banks remains pending. Since October 2017, Cabo Delgado has faced an armed insurgency resulting in a severe humanitarian crisis affecting over a million displaced individuals.
The approval of $4.7 billion funding for the Mozambique LNG project signifies a strategic partnership between Mozambique and the United States, with promising job creation and energy security implications. The project aims to responsibly harness the region’s natural resources while addressing the ongoing challenges posed by local armed conflicts. The continued commitment from international financial partners remains critical for the project’s advancement and regional stability.
Original Source: clubofmozambique.com
