The U.S. has approved nearly $5 billion in funding for TotalEnergies’ LNG project in Mozambique. The Export-Import Bank reapproved a $4.7 billion loan, while TotalEnergies seeks additional support. The project has faced challenges since declaring force majeure in 2021 due to security issues. Further financing approvals are anticipated soon.
The United States has approved nearly $5 billion in funding for a liquefied natural gas (LNG) project spearheaded by France’s TotalEnergies in Mozambique, as reported by the Financial Times. The U.S. Export-Import Bank has reapproved a significant loan of $4.7 billion towards this endeavor, as confirmed by Mozambique’s Minister of Energy, Estevao Pale.
TotalEnergies is currently awaiting re-approvals from the United States, United Kingdom, and Dutch export credit agencies before removing the force majeure that has been in place since 2021. This measure was enacted after Islamic State-affiliated fighters took control of Palma, located near TotalEnergies’ facilities in the Cabo Delgado province.
Pale expressed optimism in his discussions with the Financial Times, anticipating confirmation of support from both the UK and the Netherlands. Meanwhile, TotalEnergies, as well as U.S. Export-Import Bank officials and the White House, have yet to respond to requests for comments regarding this funding situation.
In a statement made in February, TotalEnergies CEO Patrick Pouyanne indicated that he expected financing for the $20 billion LNG project to be finalized shortly. The project remains pivotal for Mozambique’s energy sector and economic development, pending the final approvals for its continuation.
In summary, the U.S. has reinstated funding of nearly $5 billion for TotalEnergies’ LNG project in Mozambique. The reapproval of the loan by the U.S. Export-Import Bank is a significant step, although TotalEnergies awaits further backing from UK and Dutch agencies. The project has been under a force majeure since April 2021 due to security concerns, but there is optimism regarding future financing approvals.
Original Source: www.tradingview.com
