The Trump administration has approved a $4.7 billion loan for TotalEnergies’ Mozambique LNG project, enabling the restart of a controversial gas exploitation initiative despite ongoing violence and political instability in the region. TotalEnergies hopes to leverage additional financial support following previous agreements totaling $15 billion.
The Trump administration has provided significant support to French energy company TotalEnergies through the approval of a $4.7 billion loan for the Mozambique LNG project, as reported by the Financial Times and Bloomberg. This financing is crucial for resuming operations at a controversial site set to exploit liquefied natural gas reserves in northern Mozambique.
Originally, the loan was sanctioned in 2020 during Donald Trump’s presidency but was subsequently frozen in 2021 due to a jihadi attack near the industrial site. Despite ongoing violence and political instability in the region, including concerns regarding the integrity of the forthcoming October 2024 presidential elections, TotalEnergies remains committed to financing its operations.
TotalEnergies, which holds a 26.5% stake in Mozambique LNG, continues to seek financial support to restart the project. By 2020, $15 billion was pledged across 31 financial institutions, although the current status of these funds has not been clarified by the company.
In summary, the Trump administration’s renewal of loan support to TotalEnergies for the Mozambique LNG project signals a key development despite regional challenges. The financing aims to reactivate a venture that faced delays due to security threats and political issues. TotalEnergies is actively pursuing additional resources to facilitate the project’s continuation, reflecting ongoing interest in Mozambique’s natural gas reserves.
Original Source: www.lemonde.fr
