The Export-Import Bank of the United States (Exim Bank) has approved an expansion of financing for the natural gas megaproject in Cabo Delgado, Mozambique, reinforcing US involvement in the initiative and avoiding, according to the institution itself, the purchase of equipment falling to Chinese and Russian manufacturers.
The decision was taken unanimously on 13 March by Exim Bank’s board of directors, which gave the green light to the second amendment of a loan of up to 296 billion meticals (4.7 billion dollars), originally granted in 2019. The support is intended for the export of goods and services from the United States for the construction of the integrated Liquefied Natural Gas (LNG) project in Afungi, northern Mozambique, led by TotalEnergies.
‘The support now reaffirmed will allow US equipment to be exported to Mozambican, something that would have gone to Chinese and Russian manufacturers instead, were it not for President Trump’s leadership in reauthorising this operation,’ said Jim Burrows, vice president of Exim Bank, quoted in a statement from the institution.
The decision represents, according to the bank, the largest financing operation in its history, contributing to the creation and maintenance of around 16,400 well-paid jobs in the United States, spread across more than 68 companies in 14 US states.
The financing is part of a total investment of around 945 billion meticals (15 billion dollars), aimed at building an onshore LNG plant and associated maritime infrastructure. The project had been suspended since 2021, after armed attacks in Cabo Delgado led to the withdrawal of TotalEnergies staff and the activation of the force majeure clause.
The resumption of the project still depends on the reconfirmation of other international funding and the consolidation of security in the region, where Rwandan support forces are operating. However, according to Maxime Rabilloud, director of TotalEnergies in Mozambique, ‘the approval of the Exim Bank is a critical step’ for the full reactivation of the works. The Asian consortium has already confirmed its financial commitments, and all that remains is the final go-ahead from European banks.
Mozambican President Daniel Chapo formally thanked the US for its support in a letter sent to his US counterpart, emphasising that this funding is ‘crucial for the progress of the project’, which has the potential to generate up to 40,000 jobs, including around 20,000 jobs in the United States.
‘Your support enables the active participation of US companies in Mozambique and contributes to global energy security, within the framework of a solid partnership between our two countries,’ wrote the head of state.
In addition to the principal amount, Exim Bank expects to receive around 37.8 billion meticals (600 million dollars) in interest. The Mozambique LNG project, located in Area 1 of the Rovuma basin, is one of three gas megaprojects underway in the country and is considered strategic for the diversification of the world’s energy matrix, in a context of growing geopolitical tensions and competition for emerging markets between Western and Asian powers.
Since 2017, Cabo Delgado has been facing an armed insurrection with jihadist overtones, which has caused thousands of deaths and more than a million displaced people, severely affecting the province’s social and economic stability.
Source: Lusa
