The U.S. Export-Import Bank has approved a nearly $5 billion loan to restart the long-stalled Mozambique LNG project, marking a significant step toward resuming development led by French oil giant TotalEnergies.
Initially expected to be operational by 2029, the project faced major setbacks after Islamist insurgents attacked the Cabo Delgado region, forcing TotalEnergies to declare force majeure and halt construction.
The U.S. Export-Import Bank originally committed $4.7 billion to the $20 billion project under the Trump administration. However, the loan required re-approval after construction was suspended in 2021, preventing any funds from being disbursed.
TotalEnergies CEO Patrick Pouyanne recently expressed confidence in securing U.S. financing, with other credit agencies expected to follow in the coming months.
Mozambique LNG, in which TotalEnergies holds a 26.5% operating stake, was poised to position Mozambique as a key global LNG producer before security concerns derailed its progress.
Since then, conditions have improved, with project partner Mitsui stating in December that final preparations were underway to resume construction following renegotiations with contractors.
Despite these developments, environmental groups have criticized the decision, arguing that ongoing security risks should have been a deterrent to financial backing.
