Renewed Financing Sparks Optimism

The EXIM loan re-authorization, announced in mid-March, signals a renewed commitment to the Mozambique LNG project. The loan, which had been delayed due to security concerns in northern Mozambique, is part of a broader financial support package that includes backing from various international lenders. While the funding serves as a significant milestone, the path forward remains complex.

TotalEnergies, the project’s lead operator, has made it clear that the immediate next step hinges on security. To lift the force majeure that was declared in 2021, TotalEnergies will need to see an improvement in the security situation, which includes the restoration of order in the region and the ability to safely resume operations. While TotalEnergies has refrained from offering a concrete timeline for the lifting of force majeure, industry experts are cautiously optimistic that the situation could improve in the next year, allowing the company to restart operations.

Beyond security, the project’s financial backing must also be reinforced. While EXIM’s loan is a major boost, other key financiers, particularly from Japan and Europe, will need to reaffirm their commitments. Primary lenders part of the project’s $20 billion FID reached in 2019 include Standard Chartered, Société Générale, HSBC, EXIM, the Japan Bank for International Cooperation, the Industrial and Commercial Bank of China and China Development Bank. A reapproval process may be required, and it remains to be seen whether these lenders will follow EXIM’s lead in reaffirming their support. TotalEnergies, in partnership with the Mozambican government, will need to continue fostering these relationships and ensure that investors remain confident in the project’s long-term viability. On the operational front, the restart will likely involve extensive preparatory work, with TotalEnergies rebuilding infrastructure, reinforcing security measures and carefully reassessing the project’s timeline.

Broader Impact Across the Continent

In this context, the upcoming Invest in African Energy (IAE) Forum in Paris will feature key discussions on “Advancing Africa’s LNG Potential: Overcoming Infrastructure and Investment Challenges,” addressing issues ranging from security concerns to regulatory and financial barriers. The Mozambique LNG project is not just a major financial endeavor – it has broader implications for Africa’s energy landscape and could serve as a model for other LNG projects on the continent, providing crucial lessons in financing, security management and regional cooperation.

At IAE 2025, Mozambique LNG and other large-scale liquefaction projects will be at the forefront of conversations, offering a real-time case study in navigating the complex dynamics of energy development in Africa. Insights gleaned from the project could inform strategies for unlocking other LNG opportunities across the continent, ensuring that Africa can capitalize on its vast natural gas resources. As industry leaders and stakeholders gather in Paris to discuss Africa’s LNG potential, the lessons learned from Mozambique will undoubtedly guide the next phase of the continent’s energy transformation.

IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.