The U.S. Export-Import Bank (EXIM) has reauthorized a $4.7 billion loan for the long-delayed Mozambique LNG facility, bringing the project a step closer to restarting construction.
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The EXIM board at a meeting on Thursday reapproved a loan that was previously issued during President Trump’s first term. It needed reauthorization after majority stakeholder TotalEnergies SE declared a force majeure and stopped work on the project in 2021 amid rising violence and security threats posed by insurgents in Cabo Delgado province.
TotalEnergies and its partners have been working for years to revive the $20 billion, 12.9 million tons/year (Mt/y) project. Management previously hoped to restart work at the end of last year, but it’s been waiting on EXIM and export credit agencies in the UK and the Netherlands to reapprove loans. The UK and Dutch are reportedly poised to reconfirm their commitments to the project as well.