The Mozambique Liquefied Natural Gas (LNG) project, led by TotalEnergies, has received a crucial boost with the U.S. Export-Import Bank (EXIM) approving a $4.7 billion loan to support its development.
The African Energy Chamber (AEC) has welcomed this move, commending the Trump administration for its unwavering support in advancing one of Africa’s largest energy investments.
The Mozambique LNG project, which faced setbacks due to security concerns in the Cabo Delgado province, is now set to resume, potentially transforming Mozambique’s economy while reinforcing Africa’s place in the global energy market.
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), highlighted the importance of continued investment in Africa’s natural gas sector.
“This project is more than just an energy investment; it is a commitment to Africa’s future.
“The support of the U.S. government, TotalEnergies, and key stakeholders will be instrumental in ensuring Mozambique’s economic transformation.”
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC)
The Mozambique LNG project has been described as a game-changer for Mozambique and Africa’s energy industry.
Originally approved in 2019 with a $20 billion final investment decision, the project was put on hold in 2021 due to insurgent attacks in northern Mozambique.
With an estimated 65 trillion cubic feet of recoverable natural gas, the project has a planned capacity of 13 million tons per annum (MTPA), with a potential expansion to 43 MTPA.
The EXIM Bank’s reauthorization of its financial support signifies renewed confidence in the project’s viability.
Experts believe that Mozambique’s vast natural gas reserves could position the country as a key global energy supplier, particularly to Asian and European markets.
With global energy demand shifting towards cleaner fuels, natural gas is expected to play a crucial role in the transition to more sustainable energy sources.
Neil Chapman, Senior Vice President of ExxonMobil, noted that “Mozambique’s LNG potential is immense, and the renewed financial backing will ensure the country capitalizes on its natural resources to drive economic growth and job creation.”
Strengthening U.S.-Africa Energy Ties
The U.S. decision to back the project reflects a broader shift in energy diplomacy, positioning the country as a key player in Africa’s energy development.
The loan approval will also benefit American businesses, with U.S. subcontractors expected to receive up to 30% of the contract value, reinforcing economic ties between the U.S. and Africa.
The Trump administration’s endorsement of the project aligns with its broader policy of supporting energy security and economic development in Africa.
AEC described this move as a “clear signal that the U.S. remains committed to fostering energy investments that promote security, stability, and prosperity in Africa.”
U.S. officials have emphasized the importance of ensuring security measures are in place to protect the project and its workforce. “Security concerns remain a priority, but with coordinated efforts, Mozambique can achieve both economic progress and regional stability,” said a spokesperson from the U.S. Department of Energy.
The approval of the EXIM loan for the Mozambique LNG project sets a strong precedent for future U.S.-backed energy projects in Africa.
It reinforces the continent’s potential as a strategic hub for natural gas production and export, offering long-term economic benefits.
NJ Ayuk emphasized the need for greater collaboration between governments, investors, and development partners.
“Africa must harness its energy potential responsibly. Projects like Mozambique LNG are essential in unlocking economic growth while ensuring a fair and transparent energy transition.”
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC)
While the Mozambique LNG project is now on a path toward revitalization, stakeholders stress the importance of continued financial and diplomatic support to ensure its successful implementation.
The U.S. backing of the project marks a pivotal moment for Africa’s energy future, reflecting a commitment to enhancing global energy security and fostering sustainable development.
As Mozambique advances toward becoming a leading natural gas producer, the successful execution of this project could serve as a model for other large-scale energy investments across the continent.
With EXIM’s $4.7 billion loan approval, the Mozambique LNG project has regained momentum, potentially reshaping Africa’s energy landscape.
The support from the U.S. government and TotalEnergies reinforces confidence in Africa’s natural gas sector, paving the way for economic transformation and long-term prosperity.
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