U.S. Export-Import Bank Approves $5 Billion Loan for Mozambique LNG Project

The U.S. Export-Import Bank (EXIM) has approved a nearly $5 billion loan to support the long-delayed Mozambique Liquefied Natural Gas (LNG) project led by French oil major TotalEnergies. This approval marks a crucial step in reviving the $20 billion project, which has been on hold since 2021 due to security concerns in the Cabo Delgado region.

Initially approved during the Trump administration, the loan required re-approval after construction was halted following violent insurgent attacks. TotalEnergies CEO Patrick Pouyanné had anticipated this decision and expects further backing from UK and Dutch export credit agencies in the coming months.

The Mozambique LNG project, in which TotalEnergies holds a 26.5% operating stake, is expected to transform the country into a significant LNG producer. However, progress was disrupted due to militant attacks linked to Islamic State-affiliated insurgents. Improved security conditions have led to efforts to restart construction, including renegotiations with contractors.

Despite this development, environmental and human rights organizations have expressed concerns over the project’s security risks, environmental impact, and economic feasibility.

With the approval of this funding, Mozambique is now one step closer to resuming its ambitions of becoming a major player in the global LNG market.