Financial Energy Review
…..by Ben Ndubuwa….
The African Energy Chamber (AEC) has expressed its gratitude to the U.S. government for its continued support in advancing the Mozambique Liquefied Natural Gas (LNG) project. The initiative, led by TotalEnergies, is expected to significantly impact Africa’s energy landscape, driving economic growth and energy security in Mozambique and beyond.
The U.S. Export-Import Bank recently approved a $4.7 billion loan to support the project, a decision the AEC hailed as a “much-needed boost” to one of the continent’s most important energy investments.
“This project, which has been on hold since 2021 due to security concerns in the Cabo Delgado province, is now positioned to proceed thanks to the renewed backing from the U.S.,” the AEC stated. “The Mozambique LNG project represents one of the largest LNG investments in Africa – reaching a landmark $20 billion final investment decision in 2019 – with the potential to not only stimulate the Mozambican economy, but also provide a key source of natural gas to meet the growing energy demands of Asia and other international markets.”
The reauthorization of funding marks a pivotal moment in Mozambique’s natural gas sector. According to the AEC, the project, which targets approximately 65 trillion cubic feet of recoverable natural gas and boasts a planned capacity of 13 million tonnes per annum (MTPA), has the potential to play a crucial role in the global transition to more sustainable energy sources.
In addition to benefiting Mozambique’s economy, the project will also support American jobs, with U.S. subcontractors expected to receive up to 30% of the contract value. The AEC emphasized that this partnership underscores the mutual benefits of U.S. investment in African natural gas and energy development.
“This development underscores the Trump administration’s recognition of the crucial role energy investments play in fostering economic growth, security, and stability in Africa,” the AEC stated. “By backing the Mozambique LNG project, the administration has reinforced its commitment to strengthening U.S. influence in the region while contributing to a more diversified global energy mix.”
NJ Ayuk, Executive Chairman of the African Energy Chamber, called for continued collaboration among governments, investors, and development partners to ensure the project’s success. “The support of the U.S. government, along with the efforts of TotalEnergies and other key stakeholders, is essential in driving Africa’s transition to a more diversified and sustainable energy future,” he said.
Looking forward, the AEC urged international partners to reaffirm their commitment to the Mozambique LNG project, emphasizing that the development of Mozambique’s natural gas reserves is “not merely an investment in energy – it is an investment in Africa’s future.” With continued backing from the U.S. and global stakeholders, the AEC expressed confidence that the project would reach its full potential and serve as a model for future U.S.-backed energy initiatives on the continent.
