The Trump administration has authorized a $4.7 billion loan for TotalEnergies’ LNG project in Mozambique. The project, which declared force majeure in April 2021 due to security threats, awaits further loan approvals from the U.S., UK, and Netherlands. Mozambique’s energy minister expects support to be reaffirmed, facilitating project advancement.
The Trump administration has authorized an almost $5 billion loan to TotalEnergies for its liquefied natural gas (LNG) project in Mozambique, as reported by the Financial Times. Estevao Pale, Mozambique’s Minister for Energy, confirmed that the U.S. Export-Import Bank (Exim) has reapproved a loan amounting to $4.7 billion.
TotalEnergies is currently awaiting the re-approval of loans from the United States, the United Kingdom, and Dutch export credit agencies before it can lift a force majeure that has been in effect since 2021. In April 2021, the company declared force majeure after Islamic State-linked groups attacked the town of Palma, adjacent to its facilities in Cabo Delgado province.
Minister Pale expressed optimism regarding the expected reaffirmation of support from the UK and Netherlands for the project. While TotalEnergies, Exim, and the White House have not yet provided comments, Mozambique’s energy ministry was also unavailable for inquiry. In February, TotalEnergies CEO Patrick Pouyanne indicated that financing for the LNG project was anticipated to gain approval shortly.
In conclusion, the U.S. has approved nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique, which has faced significant challenges since the declaration of force majeure in 2021. With anticipation of loan confirmations from additional international partners, the project aims to progress towards resumption. Continued support from involved nations and financial institutions will be pivotal in moving the project forward.
Original Source: www.tradingview.com
