Mozambique LNG Secures $400mn AfDB Loan

The African Development Bank has approved a long-term loan of $400mn to support the construction of Total-led Mozambique LNG export project, it said November 26.

“By its approval, the African Development Bank joins a global syndicate of commercial banks, development finance institutions, and export credit agencies, to jointly provide the requisite senior debt financing for the project. Financial close is expected within the first half of 2020,” it said. The project, due on stream by 2024, was recently selected to receive a $5bn loan from the US Export-Import Bank (Exim).

In September this year, French Total closed its $3.9bn purchase of an operating stake in the Mozambique LNG project from Texan producer Anadarko Petroleum. Anadarko was bought by fellow Houston-based operator Occidental Petroleum in August for $55bn. That month Occidental also agreed to sell Anadarko’s assets in Mozambique and other African countries to Total under a deal worth $8.8bn.

Total now commands a 26.5% stake in Mozambique LNG – a $20bn scheme to produce up to 12.88mn mt/yr of LNG from gas resources in the Rovuma basin off Mozambique.

According to Total, almost 90% of Mozambique LNG’s future production has already been sold through long-term contracts with key buyers in Asia and Europe. Total’s partners in the venture are Japan’s Mitsui E&P (20%), India’s ONGC Videsh (10%) and BPRL Ventures Mozambique (10%), local players ENH Rovuma (15%) and Beas Rovuma Energy Mozambique (10%) and Thailand’s PTTEP (8.5%).