$5 billion loan dusting off the cobwebs from TotalEnergies’ stalled $20B LNG project

Following a years-long hiatus, a multibillion-dollar liquefied natural gas (LNG) project off the coast of Mozambique is shaking the rust off its development by getting back on track with a loan of nearly $5 billion secured from the newly appointed board of the Export-Import Bank of the United States (U.S. EXIM), hand-picked by the Trump administration.

France’s energy giant TotalEnergies put the Mozambique LNG project on ice and declared force majeure in April 2021 in the aftermath of insurgent attacks that occurred close to the construction camp. The company made the decision to halt the development after evaluating the security situation in the north of Cabo Delgado province. The move placed the development and start-up of the LNG project on hold.

Given President Donald Trump’s determination to unleash U.S. energy dominance and the key role LNG plays in this vision, the U.S. EXIM board’s decision to approve a $4.7 billion loan for the Mozambique LNG project, developed by TotalEnergies, does not come as a surprise. It is believed that LNG exports from the project would likely yield economic benefits to the United States, diversify global LNG supplies, and improve energy security for U.S. allies and trading partners.

While TotalEnergies did not secure approval from the Biden administration to release the massive funding granted during Trump’s first term in 2020 for its activities in Mozambique, the latest decision from U.S. EXIM puts the number of governments that have given Mozambique LNG a green light to two, as the United States government was the second one to do so after the Italian government of Giorgia Meloni put its stamp of support on TotalEnergies’ project.

The story of Mozambique LNG began with the discovery of a vast quantity of natural gas off the coast of northern Mozambique in 2010, leading to a $20 billion final investment decision (FID) in 2019. This project entails the development of the Golfinho and Atum fields in Rovuma Offshore Area 1 alongside the construction of two liquefaction trains with a total capacity of 13.1 million metric tons per year (mtpa).

The commercial operations are not expected to start before 2027 or 2028, with the first LNG cargo slated for 2028. The project is positioned to meet Atlantic and Asia-Pacific market needs and tap into the growing energy demands of the Middle East and Indian subcontinent. Area 1 contains approximately 65 trillion cubic feet (tcf) of gas resources, of which 18 tcf will be developed with the first two trains.

TotalEnergies EP Mozambique Area 1, a wholly owned subsidiary of TotalEnergies SE, operates the Mozambique LNG project with a 26.5% stake, together with Mitsui E&P Mozambique Area1 (20%), ENH Rovuma Área 1 (15%), ONGC Videsh Rovuma (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).

While some are celebrating the $4.7 billion loan as a way to restart the project, others have described it as a controversial move amid human rights and climate concerns. As a result, international NGOs, opposed to the development of Mozambique LNG, have called on the other European and Asian financiers of Mozambique LNG to refuse to follow the U.S. EXIM bank’s lead, which they describe as “toxic and irresponsible.” They urge other players to oppose the restart of the project, which they see as “a climate bomb associated with numerous allegations of human rights violations.”

Ayumi Fukakusa, Deputy Director with Friends of the Earth Japan, noted: “Japanese export credit agencies – Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) – combined are the largest public financiers for the Mozambique LNG project.

“They should be transparent and accountable to their financing but they have not given any clear explanations how they conduct their due diligence for the project. This project is harming communities and human rights violations are reported. Japanese ECAs should support the call for independent investigation and not proceed with financing.”

According to Reclaim Finance, Friends of the Earth France, Friends of the Earth U.S., ReCommon, Milieudefensie/Friends of the Earth Netherlands, Friends of the Earth Japan, Justiça Ambiental!/Friends of the Earth Mozambique, Urgewald, and Oil Change International, the decision to green-light this loan of close to $5 billion comes despite the project being under force majeure since April 2021, following a large-scale insurgent attack that devastated the town of Palma, close to TotalEnergies’ Afungi gas site.

Collin Rees, U.S. Campaign Manager at Oil Change International, remarked:“Mozambique LNG is a climate and human rights nightmare. By approving this loan for TotalEnergies’ deadly project, the Trump administration is committing billions in taxpayer funds to a fossil fuel project linked to severe human rights violations, while simultaneously cutting federal jobs and essential public services for working families. Public money should support a healthy society and a sustainable future — not handouts for corporate polluters and human rights abusers.

“But the UK still has the option to take a different path. Keir Starmer faces a clear choice: join with Trump and other far-right governments in providing taxpayer backing for this disastrous project – already linked to hundreds of tragic deaths, including a British citizen – or show courage and break with the previous UK Government’s foolish decision to support this nightmare.”

According to NGOs, all the public and private financial institutions of the 2020 $14.9 billion project financing to Mozambique LNG have been asked to approve a restart of the project and release their loans and loan guarantees after a four-year suspension. However, these environmental groups are adamant that U.S. EXIM’s decision stands in stark contrast to recent moves in the Netherlands and the UK.

Daniel Ribeiro, Technical Coordinator with Justiça Ambiental!/Friends of the Earth Mozambique, commented:“The human rights violations, armed conflict, environmental impacts and risky economic projections of the Mozambique LNG project should have kept most sensible investors away. The decision of the US EXIM bank to approve $4.7 billion for a French company to operate in Mozambique does not make sense.

“Especially since Trump threw a tantrum and recently cancelled a few million dollars of aid to Mozambique’s health sector. This exposes the real focus of his administration – to take funds and resources away from people and transfer them to rich transnational corporations.”

In a bid to illustrate their point, the groups remind that the Dutch government announced an independent inquiry at the start of March 2025 into alleged human rights abuses committed by Mozambican security forces in connection with the Mozambique LNG project.

Lorette Philippot, Private Finance Campaigner with Friends of the Earth France, pointed out: “The message is clear: Total can count on far-right governments, whether in Italy or the USA, to support its Mozambique LNG project, in the midst of climate chaos and terrible allegations of atrocities committed against civilians.

“French banks Crédit Agricole and Société Générale, which are constantly redoubling their efforts to show an environmentally and socially responsible face, can no longer hide in complicit silence. They must refuse to follow Trump and Meloni’s lead, and oppose a restart of Mozambique LNG.”

In addition, UK Export Finance (UKEF) has sought legal advice regarding its contractual obligations to further support the project, which climate activists interpret to signal growing concerns among international financiers.

Simone Ogno, Finance and Climate Campaigner with ReCommon, stated: “The Italian SACE was the first export credit agency to confirm its financial support for Mozambique LNG, and it did so in the absence of a new assessment on the social and environmental impacts associated with the project.

“US EXIM is today doing the same. In these choices we can see the close relationship between PM Giorgia Meloni’s government and President Donald Trump’s government, in complete disregard for the human rights violations associated directly and indirectly with Mozambique LNG.”