The US Export-Import Bank (Exim) has approved a direct loan of up to $4.7 billion to support the Mozambique LNG project in Cabo Delgado, marking a significant milestone in the project’s revival after years of uncertainty.
The financing, which had been paused since 2021 due to security concerns and the declaration of force majeure, has now been amended to accommodate new timelines for the project’s restart. However, the core structure of the loan remains unchanged, meaning no further approvals from the US government are required.
A Long-Awaited Commitment to Mozambique’s LNG Sector
Speaking on the approval, Jim Cruse, Acting President and Chairman of US Exim Bank, emphasized the significance of the project, stating:
“I am pleased that in authorising this amendment, the bank finally fulfils the commitment made nearly six years ago to the Mozambique LNG project, which is important to thousands of US employees working for US manufacturing and services companies.”
The Mozambique LNG project, operated by TotalEnergies, is set to become Africa’s largest private-sector investment, driving economic transformation, job creation, and infrastructure development in the region.
The Path to Resumption: International Backing for Mozambique LNG
Also read: US Strengthens Energy Security with Support for Mozambique LNG
In addition to US Exim’s $4.7 billion loan, TotalEnergies is also anticipating the finalisation of a $1 billion commitment from the UK government, further strengthening the financial backing for the project’s restart.
The Mozambique LNG project, one of Africa’s most significant liquefied natural gas (LNG) ventures, is expected to:
✔ Boost Mozambique’s GDP through LNG exports
✔ Create thousands of jobs in both Mozambique and supplier countries
✔ Enhance energy security by providing a reliable gas supply to global markets
✔ Attract foreign direct investment and drive infrastructure development
A Turning Point for Mozambique’s Energy Industry
The approval of this loan signals renewed confidence in Mozambique’s LNG sector, positioning the country as a key player in the global energy market. With security conditions improving and international financial backing secured, the Mozambique LNG project is on track to resume construction and advance towards production.
As TotalEnergies and its partners move forward, the project’s successful execution will play a crucial role in Mozambique’s long-term economic growth and energy transition.
