The U.S. Export-Import Bank has approved a $4.7 billion loan for a controversial LNG project in Mozambique, developed by TotalEnergies SE, amid an ongoing insurgency and reports of civilian atrocities linked to the government’s security forces. Initially, a $5 billion loan was authorized in 2019, later revised down. Following violence in 2021, financing was suspended due to severe human rights violations reported in the region.
The U.S. Export-Import Bank’s board has recently approved a substantial loan amounting to $4.7 billion for a contentious liquefied natural gas (LNG) project in Mozambique. This decision signals an alignment with former President Trump’s efforts to bolster the fossil fuel industry. The project concerns an LNG facility to be developed by TotalEnergies SE in the Afungi region, known for an ongoing Islamist insurgency and linked to a massacre of civilians.
Initially, the bank authorized a $5 billion loan in 2019 during Trump’s presidency, predicting support for American jobs through exports of necessary construction equipment and services. However, the loan was subsequently reduced to $4.7 billion, which still marks it as the most significant deal in the agency’s history.
In 2021, the area experienced a surge in violence as Islamist rebels overtook the region, leading to over 1,000 fatalities and halting TotalEnergies’ operations. Consequently, financing from the U.S. and other financial institutions was suspended. Investigations by POLITICO revealed severe human rights violations by security forces assigned to protect the Total project, prompting judicial inquiries into the reported killings. TotalEnergies has denied any involvement in these activities.
In summary, the approval of the $4.7 billion loan by the U.S. Export-Import Bank for the Mozambique gas project raises significant concerns, notably amid ongoing violence and human rights violations in the region. Although intended to support U.S. jobs and services, the project is overshadowed by its controversial background and past atrocities linked to the government forces involved. This loan remains the largest in the agency’s history, underscoring the complexities surrounding international financing in unstable regions.
Original Source: www.eenews.net
