TotalEnergies has secured a US$4.7 billion loan to help finance its Mozambique LNG project, which has faced setbacks due to Islamist insurgent attacks. Backed by the US Export-Import Bank, this funding is essential for the project’s estimated US$20 billion cost. Critics highlight its substantial carbon emissions and potential human rights abuses, prompting serious ethical concerns regarding the investment.
TotalEnergies is set to receive a US$4.7 billion loan for its liquefied natural gas (LNG) project in Mozambique, described as a potential “carbon bomb.” Backing from the US Export-Import Bank (EXIM) is critical for accessing additional financing needed for the project, which has an estimated cost of US$20 billion. Construction was halted after terror attacks by local Islamist groups prompted a force majeure declaration by TotalEnergies.
Initially funded in 2019 under the Trump administration, the project faced delays due to increased violence in the Cabo Delgado province. However, as security forces made progress against insurgents, TotalEnergies aimed to resume construction. Yet by January of this year, the company acknowledged ongoing security and financing challenges would delay restart until 2029.
The US$4.7 billion loan to TotalEnergies for its Mozambique LNG project raises significant concerns regarding environmental impact and human rights violations. While the US government, through EXIM, has facilitated this funding, the project has attracted criticism for its potential contribution to climate change and social unrest in the region. As TotalEnergies navigates financing issues, the broader implications of this investment warrant scrutiny.
Original Source: macaonews.org
