The US Export-Import Bank (Exim) has approved US $5bn in financing for the Mozambique LNG project, providing a much-needed boost to the long-delayed development. The US $20bn project, led by TotalEnergies, had been halted since 2021 due to violent insurgent attacks in Cabo Delgado, northern Mozambique.
TotalEnergies holds a 26.5% operating stake in the project, with other shareholders including Mitsui, Mozambique’s state oil company ENH, ONGC, Bharat Petroleum, PTTEP, and Oil India. The Exim funding had faced delays due to political transitions in the US and security concerns in Mozambique. However, this approval could help revive the project’s progress despite ongoing challenges.
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Challenges
TotalEnergies had actively lobbied for the Exim Bank’s support, enlisting the services of Primus Responsum LLC, a lobbying firm, at a fee of $250,000 if the financing was approved before the transition of US leadership in January 2025.
The project has been positioned as a strategic alternative to Russian gas for the European market, especially following the disruptions caused by the Russia-Ukraine conflict. TotalEnergies’ CEO, Patrick Pouyanne, highlighted that the project is expected to create 16,000 American jobs, making it economically significant for both Mozambique and the US.
Security issues continue to threaten the project’s future, with insurgent activity in Cabo Delgado remaining a persistent challenge. TotalEnergies had declared force majeure and suspended operations at the Afungi site in 2021. Pouyanne has indicated that the project might not start production until 2030 due to these complications. While the Exim funding provides a financial lifeline, resolving security and human rights concerns will be crucial for the project’s long-term success.
