By : Lloyd Mahachi
TotalEnergies, the French energy giant, is in a rush to secure billions of dollars in frozen US funding for its natural gas project in Mozambique. The company is eager to get the $4.7 billion loan from the Exim Bank of the US approved before President-elect Donald Trump takes office.
This loan was initially approved in 2019, but the project was put on hold due to Islamist violence in the Cabo Delgado region, which forced Total to pull its staff from the project site in Afungi. The violence had a significant impact on the project’s timeline and budget, and Total is now working to get the project back on track.
To revive the project, Total has hired a consultancy firm to lobby in Washington, as it fears the new administration may introduce bureaucratic delays or impose new conditions. The company is taking a proactive approach to ensure that the project receives the necessary funding to move forward.
The recent outbreak of post-election violence in Mozambique has also raised concerns in Washington. However, Total’s CEO, Patrick Pouyanne, has written to US authorities to reassure them that the security situation in Cabo Delgado has significantly improved. With the help of Rwandan and southern African forces, Mozambique has managed to retake territory from the insurgents, allowing some displaced civilians to return home.
Despite this progress, Total’s project in Mozambique has faced opposition from some Democratic lawmakers who are against American financing for fossil fuel projects. They argue that the project will contribute to climate change and have negative environmental impacts. However, TotalEnergies maintains that the project will bring significant economic benefits to Mozambique and help to meet the growing demand for energy in the region.
In February, Exim Bank’s Transactional Risk Committee approved a decision to restart the loan, but no board vote was taken. TotalEnergies is now waiting for the final approval, which is crucial for the project’s success. The company plans to develop a liquefied natural gas (LNG) project in Mozambique’s Cabo Delgado province, which is expected to be a critical milestone for the country’s energy sector.
The project has been suspended since 2021 due to escalating insurgent violence, but with improved security conditions, TotalEnergies is set to restart construction. The project’s scope includes the development of the Golfinho and Atum fields at the nearby Offshore Area 1 concession, which will be tied back to an onshore LNG production facility.
TotalEnergies has also planned to build a $3.2 billion gas import terminal in Mozambique, which will help avert a looming gas shortage in South Africa. The Matola project, near Maputo, is expected to start delivering gas by the end of 2027, with a capacity of 2.5 million tons annually. This project will not only provide energy security for South Africa but also create jobs and stimulate economic growth in the region.
The Mozambique gas project is a significant investment for TotalEnergies, and the company is committed to ensuring its success. With the support of the US government and other stakeholders, TotalEnergies is confident that the project will move forward and bring benefits to the people of Mozambique and the region as a whole.
Editor : Josephine Mahachi
