The U.S. has approved approximately $5 billion for TotalEnergies’ Mozambique LNG project, with a key $4.7 billion loan from Exim. TotalEnergies needs additional approvals from U.S., U.K., and Dutch agencies to lift the force majeure declared in 2021 due to regional violence. Minister Estevao Pale expects supportive feedback from the U.K. and Netherlands.
The United States has approved nearly $5 billion in funding for a liquefied natural gas project in Mozambique, led by France’s TotalEnergies. This information was reported by the Financial Times, highlighting that the U.S. Export-Import Bank (Exim) has reauthorization for a loan amounting to $4.7 billion, as confirmed by Mozambique’s Energy Minister, Estevao Pale.
TotalEnergies is presently waiting for loan approvals from U.S., U.K., and Dutch export credit agencies, which are necessary to lift the force majeure declared on the project since 2021. The force majeure status was initiated when Islamic State-linked insurgents attacked Palma, a town adjacent to the project facilities located in Cabo Delgado province.
Minister Pale expressed optimism about the U.K. and Dutch export agencies reaffirming their support for the investment. As of now, TotalEnergies, Exim, and the White House have not yet provided comments regarding the situation, and Mozambique’s Energy Ministry has not been accessible for inquiries. In February, TotalEnergies CEO Patrick Pouyanne indicated that financing for the $20 billion project was anticipated to be secured soon.
The U.S. investment in TotalEnergies’ Mozambique gas project represents a significant commitment towards international energy development. With the reapproval of the $4.7 billion loan by the U.S. Export-Import Bank and the anticipation of support from the U.K. and Dutch agencies, the project may soon move forward, following resolution of the force majeure status. The situation stands as a momentous step in global energy financing amidst regional security challenges.
Original Source: www.tradingview.com
