The United States Export-Import (EXIM) Bank has re-approved a $4.7 billion loan for the TOTAL-operated Liquefied Natural Gas (LNG) project in Mozambique, marking a major step forward for the $20 billion development.
The Mozambique LNG project, originally financed in 2020, was halted after insurgent attacks in the Cabo Delgado province in 2021. Since late 2023, TOTAL has repeatedly affirmed improved security conditions in the area, but full project resumption remains contingent on securing all financing commitments.
Estevão Pale, Mozambique’s Minister for Energy, confirmed EXIM’s renewed support, while TOTAL continues awaiting loan re-approvals from UK Export Finance (UKEF) and Dutch financial institutions, which collectively account for less than $2.1 billion in funding.
The Mozambique LNG project, with a planned output of 13 million tonnes per year, has received financial backing from multiple export credit agencies (ECAs) worldwide, including Japan Bank for International Cooperation (JBIC), Italy’s SACE, and South Africa’s ECIC, alongside 19 commercial banks led by Standard Bank of South Africa.
EXIM’s involvement aims to support U.S. contractors, with the agency estimating that its financing will sustain 16,700 American jobs across eight states, including Texas, Louisiana, and Pennsylvania, over the project’s five-year construction period.
Source: Africa Oil & Gas Report
