- According to a report by international news agency Bloomberg, Total SA-led liquefied natural gas project in Mozambique will receive commitments for about US$15 billion next month.
- The first and most significant phase of the financing commitment for the LNG project — which will be Africa’s biggest private investment yet — involved lenders including about 20 banks.
Acquiring funding for construction of the $23 billion project, which will chill natural gas into a liquid for export comes as oil and gas companies globally are focused on cutting costs as the coronavirus curbs energy demand and pressures prices.
The group of about 20 banks involved in the lending includes Rand Merchant Bank, Standard Bank Group Ltd. and Societe Generale SA, which is acting as the financial adviser, according to one of the people familiar.
Dele Kuti, Standard Bank’s global head of oil and gas, said the company was “pleased to see the progress” on achieving final credit approvals for the Mozambique LNG project, without confirming details of the financing.
“We have also approved large participations in Mozambique LNG’s ECIC and commercial tranches. We look forward to signing the facilities in the next few weeks,” Kuti said.
First production for the project is scheduled for 2024. Read more
The U.S. Export-Import Bank has approved the $4.7 billion loan to back American suppliers for the project. Japan Bank for International Cooperation will provide $3 billion, Mozambique state-owned newspaper Jornal Noticias reported on Tuesday. Read more
The so-called Area 1 LNG project will generate about $38 billion in revenue for Mozambique’s government over its lifetime, according to a Finance Ministry forecast.
Read the AFDB Area 1 LNG Project Summary here
Author: Bryan Groenendaal