TotalEnergies to Commence Operations in Mozambique by Middle of the Year

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The LNG project is budgeted at around USD 20 billion. The US Export-Import Bank had previously agreed to a USD 4.7 billion loan under President Donald Trump’s first administration. Still, it needed to be re-approved after construction on the project was frozen in 2021 following a major attack by Islamist terrorists against Palma town.

Patrick Pouyanne, the CEO of the French oil and gas company, TotalEnergies, which heads the Mozambique LNG Project, located on the Afungi peninsula, in Palma district, in the northern province of Cabo Delgado, has announced that operations may resume by the middle of this year.

According to Pouyanne, “TotalEnergies and its partners in the giant Mozambique LNG project are planning to restart construction on the 12.8 mtpa (million tonnes a year) project by the middle of this year.”Last March, the United States Export-Import Bank board approved a loan of almost five billion dollars for the LNG.

The LNG project is budgeted at around US$20 billion. The US Export-Import Bank had previously agreed to a USD 4.7 billion loan under President Donald Trump’s first administration. Still, it needed to be re-approved after construction on the project was frozen in 2021 following a major attack by Islamist terrorists against Palma town.

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Pouyanne said last February that he expected financing from the United States to be approved, with other credit agencies to follow in the ensuing months. The company had been waiting for loan reapprovals from the United States, UK and Dutch export credit agencies before lifting a force majeure on the project that has been in place since the 2021 terrorist raid.