The US Export-Import Bank has approved a nearly $5 billion loan for TotalEnergies’ long-delayed liquefied natural gas (LNG) project in Mozambique.
This move clears a significant hurdle for the project’s restart, which has been stalled since 2021 due to violent unrest in the region.
The $20 billion project, Mozambique LNG, aims to make Mozambique a major LNG producer.
However, environmental groups have raised concerns about the project’s security risks, human rights violations, and environmental impacts.
TotalEnergies holds a 26.5% operating stake in the project, which is expected to receive additional financing from the UK and Dutch export credit agencies.
The company’s CEO, Patrick Pouyanne, had anticipated the US financing approval, and Mozambique’s energy minister, Estevao Pale, also expects support from the UK and Netherlands.
The project’s restart has been facilitated by improved security in the region, which had been plagued by an insurgency led by Islamic State-linked militants.
Despite concerns from environmental groups, the project is expected to move forward, with construction set to resume after renegotiation with contractors.
