The President of Mozambique thanked the U.S. for a $4.7 billion funding approval for the Mozambique LNG project, expected to create 40,000 jobs total, including 20,000 in the U.S. TotalEnergies noted that funding discussions are advancing, pending security improvements in Cabo Delgado, where operations have been suspended due to terrorism since 2021.
The President of Mozambique expressed gratitude to the President of the United States for the approval of $4.7 billion in funding for the Mozambique LNG project, which is projected to create 20,000 jobs in the U.S. and 40,000 in total. President Daniel Chapo emphasized that this project has the potential to produce 13 million tonnes of LNG annually and significantly contributes to global energy security, fostering cooperation between the two nations.
In his message, President Chapo mentioned that the funding approval, facilitated by the U.S. Export-Import Bank, signifies a strong partnership with the United States that allows American companies to participate in Mozambique’s economic development. He highlighted the project’s commitment to sustainable resource management in southern and eastern Africa, ensuring that local communities and international partners both benefit from the natural gas resources.
TotalEnergies announced that funding arrangements for resuming the natural gas exploration project in Cabo Delgado are nearing completion, following Exim Bank’s endorsement. The company’s director for Mozambique, Maxime Rabilloud, noted the importance of this funding amid ongoing challenges, as the project is currently in a state of force majeure due to regional security issues.
The LNG project, which totals an investment of $15 billion, had been suspended since 2021 following terrorist attacks in Cabo Delgado. The resumption of operations now hinges on improved security in the region, assisted by Rwandan forces. Rabilloud reaffirmed that the financing consortium includes several international banks and credit agencies, including around $5 billion from Asian banks, with only European bank financing pending.
The funding approval for the Mozambique LNG project represents a significant investment in both local and international job creation, highlighting strong ties between Mozambique and the United States. The emphasis on sustainable resource management and regional security is crucial as the project moves towards resumption amid continuing challenges. Overall, this initiative not only supports Mozambique’s economic framework but also reinforces global energy security efforts.
Original Source: clubofmozambique.com
