French energy giant TotalEnergies is intensifying efforts to secure $4.7 billion in frozen funding from the US Export-Import Bank (Exim Bank) for its natural gas project in Mozambique. The company is keen to finalize the loan approval before any potential bureaucratic shifts under the incoming US administration.
The Exim Bank initially approved the credit in 2019, but escalating Islamist violence in Mozambique’s Cabo Delgado region forced Total to suspend its operations in Afungi and withdraw staff.
Now, the company has enlisted a consultancy firm to lobby in Washington, emphasizing the project’s strategic importance. 
Improving Security in Cabo Delgado
In a letter to US authorities on December 3, TotalEnergies CEO Patrick Pouyanné sought to assure decision-makers of improved security conditions in Cabo Delgado. With the support of Rwandan and southern African forces, Mozambique has regained control of territories previously held by insurgents, enabling some displaced civilians to return to their homes.
The improvement in security has reignited hopes for the project’s resumption. In February, Exim Bank’s Transactional Risk Committee approved moving forward with the loan, but a final board vote remains pending.
Concerns Over US Financing
TotalEnergies’ lobbying efforts face challenges, as sections of Democratic lawmakers oppose US financing for fossil fuel projects, citing environmental concerns. This opposition highlights the growing debate around financing energy initiatives that rely on non-renewable resources.
Additionally, recent post-election violence in Mozambique has drawn attention in Washington, adding another layer of complexity to the approval process.
The Stakes for Mozambique’s LNG Project
TotalEnergies’ natural gas project in Mozambique represents a significant investment in the country’s energy infrastructure and a potential driver of economic growth.
However, the project’s reliance on US funding underscores the importance of maintaining strong international partnerships and addressing concerns over security, governance, and environmental impact.
As TotalEnergies navigates these challenges, the company remains focused on securing the Exim Bank loan to ensure the continuation of this critical initiative.
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