U.S. energy advocates ask: Why is our ExIm Bank pumping billions into a foreign LNG project? | Columnists

The $20 billion Mozambique LNG project is being developed by France’s TotalEnergies, which holds a 26.5% operating stake. The facility is projected to produce around 13 million metric tons per year.

Supporters of U.S. domestic LNG production question why America should be leveraging production abroad, particularly in such a dangerous and unstable corner of the world. Work on the project was halted in 2021, for example, in the wake of attacks by Islamic State Mozambique.

In the wake of those terrorist attacks, Mozambique brought in troops from Rwanda in hopes of providing security to the region. Unfortunately, unrest in the area continues, in part due to a disputed national election last fall. Hundreds of people have reportedly been killed.

Why send money to Africa when the U.S. is prepared to ship more LNG, in a safe and environmentally-friendly way, from Alaska?

The president even touted the project during his speech before a joint session of Congress earlier this month.

“My administration is also working on a gigantic natural gas pipeline in Alaska — among the largest in the world — where Japan, South Korea, and other nations want to be our partner with investments of trillions of dollars each,” Trump said. “There’s never been anything like that one. It will be truly spectacular.”

And yet the ExIm bank, which is now “aligned with the Trump administration’s America First priorities,” according to a statement from the administration, has approved the massive Mozambique project. The ex officio board members of the investment bank include U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer.

“It’s counterproductive for the Export-Import Bank to even consider sending $5 billion in U.S. taxpayer dollars to fund a French-owned liquefied natural gas project in Mozambique,” Steve Forbes, chairman of Forbes Media and co-founder of Unleash Prosperity, told InsideSources.

“DOGE’s admirable work is intended to cut unnecessary foreign aid, especially projects which would directly compete with the American LNG, including Alaska LNG. This decision not only runs counter to President Trump’s America First energy agenda, but is a risky and nonsensical investment.”

Forbes isn’t the only Trump ally questioning this decision. Former Texas Gov. Rick Perry, who served as energy secretary in Trump’s first term, posted his opposition on social media.

“The proposal for ExIm bank to send nearly $5 BILLION taxpayer dollars to fund a foreign-backed LNG project which would directly compete with our US LNG industry runs completely counter to President Trump’s America First energy agenda.”

Representatives of the ExIm Bank did not respond to repeated requests for comment, nor did the White House press office.

Last month, TotalEnergies Chief Executive Officer Patrick Pouyanne acknowledged security will remain an issue for the Mozambique project.

“Security has improved,” Pouyanne said, but added, “It will never be perfect.”

Some in the energy sector see the Mozambique facility as a direct competitor for Pacific Rim markets as the Alaska LNG project being developed by the Alaska Gasline Development Corporation. It’s expected to deliver from the North Slope gas fields on average about 3.5 billion cubic feet of gas per day, much of it for international markets.

America is the world’s largest producer and exporter of LNG, averaging 11.9 billion cubic feet of natural gas per day.

“American taxpayer dollars should not be funding foreign companies to invest overseas,” said Trump ally Charlie Kirk of Turning Point USA. “It’s time to end the export/import bank. It’s subsidizing foreign companies going directly against Trump’s agenda.

“DOGE should do their thing and end it.”