AFRICAN Development Bank (AfBD) is the latest financial institution to confirm funding for the $20-billion Mozambique Liquefied Natural Gas (LNG) project, which is being developed by a Total-led consortium in northern Mozambique.
In a statement, the development finance institution announced that it had signed a senior loan of $400-million for the project, which, in total, had secured $14.9-billion in funding from eight export credit agencies, 19 commercial banks and development finance institutions.
Financial close on the project, which is proceeding despite rising concern over violence in the territory, is expected later in 2020.
Led by Total, of France, the other equity participants in the project include Mitsui, Oil India, ONGC Videsh Limited, Bharat Petroleum, PTT Exploration, as well as Mozambique’s national oil and gas company, ENH.
The Mozambique LNG project will initially consist of two LNG trains with a total capacity of about 13-million tons a year. The LNG will be exported to customers mainly in Asia and Europe.
The AfDB said in a statement that the Mozambique LNG Area 1 agreement could herald a new age of industrialisation for Mozambique and could also facilitate the development of gas-fired electricity for both Mozambique and the region.
The bank also stressed that it had played a role in ensuring that the project was compliant with strict environmental and social standards and said the development was consistent with its country strategy for Mozambique, which sought to leverage natural resource development and investment in sustainable infrastructure.
(Source: Creamer Media Reporter)