The northern region of Mozambique, beset by conflict, is seeing progress on a vast gas export terminal, supported by the United States government.
Mozambique LNG, one of Africa’s largest fossil fuel ventures, could export up to 43 million metric tons of liquefied natural gas annually. The U.S. Export-Import Bank initially approved a $4.7 billion loan in 2019 during President Trump’s first term, when Texas-based Anadarko Petroleum led the project.
Since then, Anadarko’s stake was acquired by France’s TotalEnergies, an Islamist insurgency caused a four-year construction halt, and security forces faced war crimes allegations. Meanwhile, the U.S. emerged as the top global LNG exporter, positioning Mozambique LNG as a competitor to U.S. projects.
In a decision last year, the Export-Import Bank amended the loan, letting TotalEnergies proceed without new assessments on job, economic, human rights, or environmental impacts. This drew criticism from human rights advocates and environmentalists who argue the funds should support domestic energy.
“Using U.S. taxpayer money to fund a French company in Mozambique makes no sense,” said Andrew Bogrand from Oxfam America.
Bogrand, who visited the area, reported ongoing insurgent violence and said the project could exacerbate climate change and instability. The conflict has claimed at least 6,400 lives since 2017, with 20 fatalities last month, per Armed Conflict Location & Event Data.
In December, British and Dutch export credit agencies withdrew over $2 billion from the project after human rights allegations.
TotalEnergies announced construction was resuming, backed by the U.S. credit agency’s significant loan, as reported by the Energy Policy Research Foundation.
The Export-Import Bank declined comment. In a press release, it claimed the project supports 16,400 U.S. jobs and counters Chinese and Russian interests.
These figures rely on 2019 analysis, preceding the project’s changes and insurgency violence.
Some jobs involve Anadarko, now part of Occidental Petroleum, as shown in an agency document. It’s unclear if these jobs are now assigned to another U.S. company.
Lindsay Bailey of EarthRights International argues the lack of new analysis violates EXIM’s statute and mission to support American jobs.
U.S. Sen. Dan Sullivan and The Wall Street Journal’s editorial board criticized the loan for aiding a foreign project competing with U.S. companies.
Sen. Jeff Merkley (D-Ore.) said Congress wasn’t notified before the 2025 loan finalization, missing the chance for review.
Mozambique officials assert the project will boost revenue and development. TotalEnergies promises 7,000 local jobs and significant contracts to local firms.
Critics argue benefits remain scarce. Romão Xavier, a local consultant, noted displacement of fisherfolk for the gas project, with inadequate transport schedules to fishing grounds.
A 2024 Politico investigation revealed military abuses near the LNG project. The European Center for Constitutional and Human Rights filed a criminal complaint in France against TotalEnergies, alleging complicity in war crimes.
TotalEnergies refuted the allegations in a statement and denied knowledge of military violence.
The project is also co-owned by minority interests from India, Japan, Mozambique, and Thailand.
The 2025 loan approval followed lobbying by TotalEnergies, which spent $1.9 million on lobbying last year, despite no spending since 2019.
Proponents claim the U.S. involvement counters China’s Belt and Road Initiative, promoting national interests and soft power.
A partially state-owned Chinese bank, the Industrial and Commercial Bank of China, is among the project’s financiers, contributing $300 million, according to AidData.
Kate DeAngelis from Friends of the Earth U.S. stresses the loan’s importance for the project’s success and seeks a court order for a new analysis before the loan’s full disbursement. Legal arguments are set for later this month.
Original Story at insideclimatenews.org