By MOZTIMES
Maputo (MOZTIMES) – The United States Export-Import Bank of the United States (Exim Bank) approved on Thursday a USD 5 billion financing package for the Mozambique LNG project, a gas exploration initiative in Cabo Delgado operated by TotalEnergies.
A statement from Exim Bank indicates that the funding aims to support the export of goods and services from various US states for the development and construction of an integrated liquefied natural gas (LNG) project located on the Afungi Peninsula, in northern Mozambique.
The Mozambique LNG project has been stalled for three years due to jihadist attacks in Cabo Delgado and financing-related issues. The project investment is estimated at USD 20 billion, with approximately USD 16 billion set to be financed by export credit agencies.
During a recent visit to Mozambique, the president of the Mozambique LNG project, Maxime Rabilloud, assured that the project remains active, although he did not provide a timeline for the resumption of works.
The project was suspended in April 2021 due to "force majeure" following attacks by jihadist insurgents on the town of Palma, near the site where construction of the gas processing plant was underway on the Afungi Peninsula.
In the United States, Exim Bank's financing approval is justified by the jobs it will generate within the country and the companies that will participate in the construction of the platform in Afungi. Exim Bank attributes credit for the decision to former US President Donald Trump.
The Mozambique LNG project is a consortium led by the French oil company TotalEnergies. Other shareholders include ENH, with 15%; Mitsui & Co., with 20%; ONGC Videsh, with 10%; Oil India, with 10%; Bharat PetroResources, with 10%; and PTTEP, with 8.5%. (MT)
