The Liquefied Natural Gas (LNG) production and exploration project in Mozambique may be denied funding from the United States of America (US) after US President Joe Biden ordered the suspension of federal aid to new and "old" fossil fuel projects abroad, although there are exceptions.

The U.S. decision ordering the immediate suspension of U.S. overseas funding for new fossil fuel exploration projects, particularly coal and large carbon emissions, represents a major policy shift designed to combat climate change and accelerate renewable energy globally.

A document held by the international press indicates that the US is engaged in commitments to green energy production, this being the purpose of the Biden Administration's most urgent policies.

"Our international energy engagement will focus on promoting clean energy, advancing innovative technologies, increasing U.S. clean technology competitiveness, and providing financing and technical assistance to support net-zero transitions around the world," it reads.

This blocking of investment covers not only new projects, but also those whose investment had already been approved a long time ago "as is the case in Mozambique" - including specific projects where funding has not yet been directed.

The policy change could affect several foreign projects, including terminals in Eastern Europe and the Caribbean to receive shipments of natural gas from the United States. In addition the new dictum rules out other 'softer' forms of government support, including diplomatic and technical assistance that benefits pipeline developers, LNG terminals and other overseas projects.

The policy contains important exemptions, including for compelling national security issues, foreign policy considerations, or the need to expand energy access in vulnerable areas. It also does not apply to existing projects, including some supported by the US.

Although it is the U.S. government that retains the funding, this does not prevent the U.S. private sector from supporting the development of coal and LNG projects, overseas, according to the document.

"As long as there is demand for fossil energy products, technologies and services in global markets, the U.S. Government will not impede American companies that are ready and able to meet those needs," it reads.

And, on the other hand, the U.S. will invest in American energy companies "especially small and medium-sized enterprises, to achieve their business goals without compromising global climate ambitions."

Source: com