The Export-Import Bank of the United States (EXIM) has approved an amendment allowing a $4.7 billion direct loan for a major liquefied natural gas (LNG) project in Mozambique to proceed, ending a four-year suspension triggered by security concerns. The unanimous decision by the bank’s newly constituted Board of Directors on March 13th restarts financing for US exports of goods and services crucial for constructing the onshore LNG plant and related facilities on the Afungi Peninsula. Initially approved in 2019, the loan to the project under development by French energy giant TotalEnergies, represents the largest single transaction in EXIM’s history.
The project was put on hold in April 2021 when the operator declared force majeure due to escalating insurgency in northern Mozambique. EXIM stated its team conducted a thorough review and determined that security risks have now been “properly addressed, with substantial systems in place and appropriate management plans and mitigation applied.” The approved amendment primarily extends required dates to accommodate the restart of construction, expected as early as 2025, with officials noting no material change to the original financing terms.
“I am pleased that in authorizing this amendment, the Bank finally fulfills the commitment EXIM made nearly six years ago to this Mozambique LNG project, which is important to thousands of U.S. employees working for U.S. manufacturing and services companies,” said Acting President and Chairman Jim Cruse.
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EXIM stressed that private financing was deemed unavailable given the project’s scale and complexity. The bank also reiterated that the transaction underwent extensive due diligence and economic impact analysis, concluding it would likely benefit the US economy and not harm domestic LNG production.
In response, the President of Mozambique, Daniel Chapo, thanked the Trump administration for the approval.
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“Your support plays a crucial role in advancing this crucial project. The Mozambique LNG project has the potential to generate 13 million tonnes of LNG per year, create 40,000 new jobs, including approximately 20,000 in the US. This support allows US companies to participate in Mozambique and contributes to global energy security within the framework of a solid partnership between our two countries…while protecting the natural resources of southern and eastern Africa”, he said in a message to President Donald Trump.
