The US Export-Import Bank has approved a $5 billion loan to support TotalEnergies’ liquefied natural gas (LNG) project in Mozambique, advancing the long-delayed $20 billion development towards restarting operations.
This funding renews a commitment initially made under former President Donald Trump, who had pledged $4.7 billion before the project was suspended in 2021 due to escalating violence and security threats in Mozambique’s Cabo Delgado province.
TotalEnergies CEO Patrick Pouyanné had expressed optimism in recent weeks, saying the company expected renewed backing from other export credit agencies following the US decision. Similar reassurances are awaited from the UK and Netherlands, both of which had previously committed to financing the project.
Mozambique’s Minister of Energy, Estevão Pale, welcomed the announcement, praising the renewed American support. “We deeply appreciate the support of President Trump and the American people for this vital LNG project,” he said in a statement to the Financial Times.
First discovered in 2010, the offshore natural gas fields off Mozambique’s northern coast are believed to hold around 65 trillion cubic feet of recoverable gas. The project’s initial phase involves the construction of two LNG trains with a total annual capacity of 13 million tonnes, with potential expansion to 43 mtpa.
The project was halted in 2021 when TotalEnergies declared force majeure due to an Islamist insurgency that severely disrupted security in the region. However, recent improvements in stability have prompted Mitsui, one of the project’s partners, to announce that construction preparations are resuming following renegotiations with contractors.
Despite these positive developments, the project continues to draw criticism from environmental and human rights organizations. Daniel Ribiero, technical coordinator at Friends of the Earth Mozambique, warned that the LNG venture poses serious risks.
“The combination of human rights abuses, armed conflict, environmental harm, and uncertain economic returns should have deterred responsible investors,” Ribiero said.
The Mozambique LNG project remains one of the largest foreign investments in Africa, with renewed international backing potentially revitalizing the region’s energy ambitions.
