Mozambique’s President thanked U.S. President Trump for approving $4.7 billion for an LNG project expected to create 40,000 jobs, including 20,000 in the U.S. The funding is crucial for global energy security and supports responsible resource development. TotalEnergies awaits security improvements to resume operations in Cabo Delgado, where the project has been suspended due to violence.
The President of Mozambique has expressed gratitude to President Donald Trump for the approval of a substantial $4.7 billion funding allocation for a liquefied natural gas (LNG) project. This initiative is anticipated to create approximately 20,000 jobs in the United States and 40,000 jobs overall. Daniel Chapo highlighted the critical nature of this project, which is capable of producing 13 million tonnes of LNG annually, at a total value of $15 billion.
The support from the U.S. enables American companies to engage in Mozambique and bolsters global energy security, reflecting a solid partnership between the two nations. Chapo emphasized the importance of responsible development that benefits both local communities and global stakeholders by protecting southern and eastern Africa’s natural resources.
TotalEnergies has indicated that financing for the resumed exploration of natural gas in Cabo Delgado, Mozambique, is nearing completion following the Exim Bank’s endorsement. However, TotalEnergies’ director for Mozambique, Maxime Rabilloud, noted that the project has yet to restart due to ongoing force majeure circumstances stemming from local security issues.
The LNG project has faced challenges since its suspension in 2021 due to terrorist attacks in Cabo Delgado, prompting the withdrawal of all construction staff. Although financing from the U.S. Exim Bank is confirmed, security must be reestablished for the project to resume, supported by Rwandan forces in the region.
The comprehensive financing package for this project totals around $15 billion, comprising contributions from various international banks, including $5 billion from Asian banks. The reconfirmation of funding from European banks is still pending, with ongoing security concerns in Cabo Delgado having resulted in a humanitarian crisis affecting over a million people since the outbreak of armed conflict in October 2017.
In summary, the U.S. funding of $4.7 billion for the Mozambique LNG project signifies a significant partnership between the United States and Mozambique. It is expected to create thousands of jobs and enhance global energy security. However, the project remains contingent upon improving local security conditions and the finalization of financing from European institutions.
Original Source: clubofmozambique.com
