The African Energy Chamber (AEC) has welcomed the U.S. Export-Import Bank’s (EXIM) decision to reauthorize a $4.7 billion loan, originally approved under the Trump administration, to support Mozambique’s Liquefied Natural Gas (LNG) project.
Led by TotalEnergies, the $20 billion Mozambique LNG project had stalled in 2021 due to security concerns in the Cabo Delgado province.
With renewed financial backing, the project is now set to move forward, positioning Mozambique as a key player in the global energy market.
The initiative aims to develop approximately 65 trillion cubic feet of recoverable natural gas, with an initial production capacity of 13 million tonnes per annum (MTPA) and potential expansion to 43 MTPA.
The project is expected to drive economic growth in Mozambique and meet increasing energy demands in Asia and other international markets.
NJ Ayuk, Executive Chairman of the AEC, praised the U.S. government for its commitment to African energy investments.
“The support of the U.S. government, along with TotalEnergies and other key stakeholders, is essential in driving Africa’s transition to a more diversified and sustainable energy future,” Ayuk stated.
The loan reauthorization is also expected to benefit American companies, with U.S. subcontractors securing up to 30% of the contract value.
The AEC has called for continued collaboration among governments, investors, and development partners to ensure the project’s successful execution, creating jobs, enhancing infrastructure, and contributing to global energy security.
