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Total agrees Mozambique LNG project financing

Jul 19, 2020
2 min read
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Total announces the signing of a US$14.9 billion senior debt financing agreement for Mozambique LNG.

The project is the country’s first onshore LNG development. It includes the development of the Golfinho and Atum natural gas fields located in Offshore Area 1 concession and the construction of a two-train liquefaction plant with a total capacity of 13.1 million tons per annum. 

Mozambique LNG represents a total post-FID investment of US$20 billion. The project financing amounts to US$14.9 billion, the biggest ever in Africa, and includes direct and covered loans from 8 Export Credit Agencies (ECAs), 19 commercial bank facilities, and a loan from the African Development Bank. 

The ECAs participating in the financing include Export Import Bank of the United-States (US-Exim), Japan Bank for International Corporation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Servizi Assicurativi del Commercio Estero of Italy (SACE), Export Credit Insurance Corporation of South Africa (ECIC), Atradius Dutch State Business (Atradius), Export-Import Bank of Thailand (EXIM Thailand).

“The signing of this large-scale project financing, less than one year after Total assumed the role of operator of Mozambique LNG, represents a significant achievement and a major milestone for the project,” declared Jean-Pierre Sbraire, Chief Financial Officer of Total. “It demonstrates the confidence placed by the financial institutions in the long-term future of LNG in Mozambique. This key milestone has been reached thanks to the dedication of the Mozambique authorities and the financial partners of the project.”

Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total SA, operates Mozambique LNG with a 26.5 per cent participating interest alongside ENH Rovuma Área Um, S.A. (15 per cent), Mitsui E&P Mozambique Area1 Limited (20 per cent), ONGC Videsh Rovuma Limited (10 per cent), Beas Rovuma Energy Mozambique Limited (10 per cent), BPRL Ventures Mozambique B.V. (10 per cent), and PTTEP Mozambique Area 1 Limited (8.5 per cent).

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