Home Southern Africa US Approves Major Funding for TotalEnergies’ Mozambique LNG Initiative

Southern Africa

US Approves Major Funding for TotalEnergies’ Mozambique LNG Initiative

March 16, 2025

(3 Minutes Read)

The US Export-Import Bank has authorised a USD 5 billion loan to support TotalEnergies’ liquefied natural gas (LNG) project in Mozambique, moving the long-stalled USD 20 billion development closer to resuming operations. This financing reaffirms a commitment made under former President Donald Trump, who had initially pledged USD 4.7 billion before the project was put on hold in 2021 due to rising violence and security concerns in Mozambique’s Cabo Delgado province.

TotalEnergies CEO Patrick Pouyanné recently expressed optimism about receiving renewed support from other export credit agencies following the US decision, with similar assurances expected from the UK and Netherlands, both of which had previously committed to financing.

Estevão Pale, Mozambique’s Minister of Energy, welcomed the announcement, highlighting the renewed American support. The offshore natural gas fields discovered in 2010 off Mozambique’s northern coast are estimated to contain about 65 trillion cubic feet of recoverable gas. The initial phase of the project involves building two LNG trains with a combined annual capacity of 13 million tonnes, with the potential for expansion to 43 million tonnes per annum.

The project was paused in 2021 when TotalEnergies declared force majeure due to an Islamist insurgency that severely impacted regional security. However, recent improvements in stability have led Mitsui, one of the project’s partners, to announce the resumption of construction preparations following renegotiations with contractors.

Despite these advancements, the project faces criticism from environmental and human rights groups. Daniel Ribiero, technical coordinator at Friends of the Earth Mozambique, cautioned that the LNG project presents significant risks. As one of the largest foreign investments in Africa, the Mozambique LNG project could revitalise the region’s energy prospects with renewed international support.