Trump administration approves $4.7 billion loan for Mozambique LNG project
- The US Export-Import Bank authorized a loan of $4.7 billion for the Mozambique LNG project.
- This financing supports TotalEnergies in restarting operations after previous delays due to violence in the area.
- The decision highlights ongoing geopolitical and energy security implications in East Africa.
In northern Mozambique, the controversial Mozambique LNG project, which aims to exploit liquefied natural gas reserves, has received a significant financial boost from the US government. On March 13, 2025, the US Export-Import Bank sanctioned a loan of nearly $4.7 billion to the French multinational TotalEnergies, aimed to facilitate the restart of the halted project. The project previously had backing from the Trump administration in 2020, but due to security concerns stemming from a jihadist attack near the site, the loan was frozen in 2021. As tensions and violence persist in the region, TotalEnergies remains hopeful about leveraging financial support to revive its operations. Despite substantial financial backing from various institutions amounting to nearly $15 billion, uncertainties persist regarding the project's future due to ongoing regional instability and political challenges tied to the upcoming presidential election in October 2024, which has raised suspicions of manipulation. The decision by the US administration marks a pivotal moment in the future of the Mozambique LNG project, potentially shaping the geopolitical landscape around energy resources in East Africa.