The Mozambique LNG project involves the development of Golfinho-Atum gas field and the construction of a 12.88 Mtpa onshore LNG facility
Egypt-based multilateral financial institution African Export-Import Bank (Afreximbank) has committed $400m in loans and guarantees to support the construction of $24bn Mozambique LNG project.
The Mozambique LNG project involves the development of Golfinho-Atum gas field located offshore Area 1 Block of the deep-water Rovuma Basin.
It also includes the construction of a 12.88 million tonnes per annum (Mtpa) onshore LNG facility on the Cabo Delgado coast.
Mozambique LNG Area 1 project is led by France’s Total
The Mozambique LNG Area 1 project is led by Total. Its partners include Mitsui, Oil India, ONGC Videsh, Bharat Petroleum, PTT Exploration, and Mozambique’s national oil and gas company ENH.
Afreximbank said that the latest financing will be used by the project partners to partially fund the project’s development activities.
Afreximbank president Benedict Oramah said: “We are confident the Mozambique LNG project will create opportunities for the people of the country and drive sustainable economic growth.
“We believe that the success of projects such as this will create a precedent through which other development projects in Africa can secure funding and gain international traction.
“We are delighted to be one of the key stakeholders involved in this project which will accelerate the rate of growth of intra-African trade.”
Afreximbank noted that the guarantee is done together with Export Credit Insurance Corporation of South Africa SOC (ECIC).
The latest commitment to the LNG project is in line with the Egyptian Bank’s efforts to promote intra-African trade as well as export development.
Recently, Total and its consortium partners have secured $14.9bn financing from several banks for the Mozambique LNG project.
The senior debt financing includes Export Credit Agency (ECA) direct loans, ECA covered facilities, commercial banks loans, and a loan facility from African Development bank.
Air Products is providing its LNG technology, equipment and related process license and advisory services for the project.