Patrick-Pouyanne-TotalEnergies-Chairman
The partnership between Exim Bank and the TotalEnergies LNG Cabo Delgado Project is a positive step for Africa’s energy future, restoring confidence in the continent’s fossil fuel reserves and a balanced mix of green and fossil fuels.
The US Export-Import Bank (Exim) loan of US $4.7 billion will support TotalEnergies’ LNG project in Cabo Delgado, Mozambique. The project’s focus on low-carbon zero energy, driven by the USA and its Western allies, is up and running and is set to bring abundant benefits to Mozambique and its economy for many decades.
The Trump presidency of the USA clearly had a hand in the revival of the LNG project. As part of the President’s Government’s Make America Great Again Policy, Mozambique LNG fits squarely, generating massive returns for American technology and finance, which are directly responsible for producing over 30 per cent of the project. The project also sees the USA take a firm foothold in Africa’s energy investments, countering the Chinese and restoring American influence in the region’s economies.
Commitment to Mozambique’s Energy Sector
Mozambique, home to one of the world’s largest untapped gas reserves, has long positioned itself as a key supplier in the global energy mix. The TotalEnergies Mozambique LNG project in Cabo Delgado was initially paused in 2021 due to security concerns. However, improved security conditions have enabled TotalEnergies to successfully engage financial backers, including the US Export-Import Bank (EXIM). Mozambique’s Energy Minister, Estevão Pale, welcomed EXIM’s decision, emphasizing the project’s critical role in ensuring stable energy supplies worldwide.
Despite a broader federal cost-cutting agenda and impositions of universal tariffs on all exports to the USA, President Trump had prioritized this energy deal, reinforcing his administration’s commitment to securing access to critical energy resources. The move is likely to prompt other financial backers, including the UK and the Netherlands, to reaffirm their commitments to non-green energy in the African continent.
The Mozambique project would be transformative. The LNG sector promises vast economic potential and would position Mozambique as a major energy exporter. With this renewed support, other LNG ventures, including ExxonMobil’s Rovuma liquefied natural gas (LNG) project, are now expected to commence in 2026.
While some environmental groups have raised concerns, their opposition appears detached from the reality of Mozambique’s economic aspirations. The benefits of the project will uplift local communities, generate employment, and create long-term economic stability for decades to come. Ironically, critics who oppose the investment seem to prioritize ideology over tangible socioeconomic improvements for the population of one of the poorest and most underdeveloped regions in the world.
A Long-Awaited Commitment to Mozambique’s LNG Sector
Speaking on the approval of TotalEnergies’ project, Jim Cruse, acting president and chairman of US Exim Bank, emphasized the significance of the project, stating:
“I am pleased that in authorizing this amendment, the bank finally fulfills 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.
In addition to US Exim’s $4.7 billion loan, TotalEnergies is also anticipating the finalization 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:
(i) Boost Mozambique’s GDP through LNG exports.
(ii) Create thousands of jobs in both Mozambique and supplier countries.
(iii) Enhance energy security by providing a reliable gas supply to global markets.
(iv) Attract foreign direct investment and drive infrastructure development
(v) A New Era of Growth for Mozambique’s Energy Industry
The partnership between the USA Exim Bank and the TotalEnergies LNG project signals a positive turn for oil and gas in Africa, and it generates confidence in African energy economies, according to Corporate Africa. And, with security conditions improving and international financial backing secured, the Mozambique LNG project is on track to make Mozambique a significant player in Africa’s energy mix and play a significant role in the USA and Mozambique’s long-term economic growth and opportunities.