Mozambique LNG Project Gets Loan From EXIM Bank
After months in waiting, the US Export Import Bank has re-approved a %5 billion loan that was previously issued during the US President Donald Trump’s first term.
It needed reauthorisation after majority stakeholder French oil major TotalEnergies declared a force majeure and stopped work on the project in 2021 amid rising violence and security threats posed by insurgents in Cabo Delgado province.
Targeting approximately 65 trillion cubic feet of recoverable natural gas, the project features a planned capacity of 13 MTPA with expansion capacity of up to 43 MTPA, playing a crucial role in the global transition to more sustainable energy sources.
This project is now positioned to proceed due to the renewed backing from the US and represents one of the largest LNG investments in Africa – reaching a landmark $20 billion final investment decision in 2019 – with the potential to not only stimulate the Mozambican economy, but also provide a key source of natural gas to meet the growing energy demands of Asia and other international markets.
The Mozambique LNG project is not only key to unlocking economic potential, but also serves as a model for the future US-backed initiatives focused on energy infrastructure, job creation and sustainable growth across the continent.
TotalEnergies CEO Patrick Pouyanne anticipated this positive outcome from the US, expressing last month that further endorsements from other credit agencies were expected to follow.
AEC Welcomes Decision
Meanwhile, the African Energy Chamber (AEC), the voice of Africa’s energy sector, expressed its appreciation to the Trump administration for its unwavering support in advancing the Mozambique LNG project, a monumental initiative led by TotalEnergies that is set to reshape the energy landscape in Mozambique and across Africa.
The reauthorisation of this funding marks a pivotal moment in the ongoing development of Mozambique’s natural gas resources, which have the potential to transform the nation’s economy and solidify Africa’s position in the global energy market.
The approval, initially granted during the Trump administration’s first term, signals a critical shift in US policy – one that recognizes the importance of US leadership in fostering energy security and economic development in Africa.
The decision to approve the funding will also support American jobs, as the US subcontractors are expected to receive up to 30% of the contract value, further strengthening the economic ties between the US and Africa. This partnership demonstrates the value of American investment in African natural gas and energy development, underscoring the shared commitment to global energy security.
This development also underscores the Trump administration’s recognition of the crucial role energy investments play in fostering economic growth, security and stability in Africa.
By backing the Mozambique LNG project, the US administration has reinforced its commitment to strengthening its influence in the region while contributing to a more diversified global energy mix. This decision also sets a strong precedent for future energy projects in Africa, signalling to global stakeholders that the US remains a reliable partner in driving sustainable development.
AEC Executive Chairman Nj Ayuk said that the Chamber encourages ongoing collaboration between governments, investors and development partners to ensure the successful delivery of the Mozambique LNG project and similar ventures across Africa.
“The support of the US government, along with the efforts of TotalEnergies and other key stakeholders is essential in driving Africa’s transition to a more diversified and sustainable energy future,” Ayuk added.
