The board of the US Export-Import Bank has just approved a loan that is currently the biggest piece of funding for TotalEnergies SE’s Mozambique LNG project.
The upcoming mega facility is expected to liquefy and export the gas discoveries of Mozambique. Additionally, in order to make sure that that workers can return to the project’s site safely, the revival of earlier financing pledged by some of the credit agencies is among the most crucial factors that need to be looked into in order to restart the project.
Mozambique LNG Project Factsheet
Cost: $20 billion
Ownership and partnerships: The project is operated by TotalEnergies, holding a 26.5% stake. Other stakeholders include Mitsui Group (20%), Mozambique’s state company ENH (15%), ONGC (10%), Bharat PetroResources (10%), PTTEP (8.5%), and Oil India (10%).
Project scope: The development encompasses offshore extraction, underwater pipelines, onshore processing plants, and ancillary support facilities.
Production capacity: Plans include constructing two initial liquefaction units with a combined capacity of 12.88 million tonnes per annum (MTPA), with potential expansion up to 43 MTPA.
Social and economic impact: The project has the potential to bring significant economic benefits to Mozambique.
It also includes initiatives for local content development and social investment.
However, it has also brought on social problems. These problems are related to the displacement of local populations, and the security problems that have arisen.
Also read: TotalEnergies Delays $20 Billion Mozambique LNG Project Once Again
Challenges Facing the Project
Construction works on the project were stopped four years ago due to the Islamic State-linked militant attacks in the area. Totalenergies CEO, Patrick Poyanne, mentioned last month that he was expecting funding from the United States to be approved in coming weeks.
Additionally, funding from other credit agencies will follow in the coming months.
Totalenergies holds a 26.5% operating stake on this LNG project. This project is set to make Mozambique a major LNG producer in Africa.
Also read: Proposed Coral Norte FLNG Project in Mozambique enters consultation phase
