The US Export-Import Bank (US Exim) has approved a $4.7 billion loan to support TotalEnergies SE’s Mozambique LNG project. This is the largest financial commitment to the initiative, aimed at reviving a project that has remained stalled for four years.
The project in northern Mozambique was halted in 2021 following attacks by militants in Cabo Delgado. To restart operations, authorities must ensure the safety of workers and restore financing commitments from export credit agencies.
Economic and Political Implications
US Exim’s board recently voted in favor of the loan, according to sources familiar with the decision. Mozambique’s Energy Minister Estevão Pale confirmed the approval of the loan. However, the bank has yet to release an official statement.
The loan approval follows recent appointments to US Exim’s board by the Trump administration. TotalEnergies had previously sought loan renewal before the Biden administration ended in January but was unsuccessful.
The decision has sparked criticism from environmental groups, who argue that the US government is prioritizing fossil fuel investments while reducing support for global health programs.
“As the Trump administration cuts taxpayer-funded foreign aid, it is approving nearly $5 billion for the fossil fuel industry,” said Kate DeAngelis, deputy director at Friends of the Earth US.
Mozambique’s Energy Future and Security Challenges
The LNG project has the potential to transform Mozambique’s economy by positioning the country as a key player in global natural gas markets. Located in the Rovuma Basin, the project is expected to generate billions in revenue and create thousands of jobs.
Security concerns, however, remain a major challenge. Militant activity in Cabo Delgado threatens progress, despite regional and international forces supporting stabilization efforts. The Mozambican government is working with energy firms and security partners to ensure the safety of workers and communities.
With US Exim’s financial backing now secured, stakeholders hope that TotalEnergies can resume construction soon.