The African Development Bank Group informed it approved a long-term Senior Loan of $400 million to support the building of an integrated LNG plant, including a liquefaction facility in Mozambique.
The Mozambique LNG Area 1 Project includes a global team of energy developers and operators, led by Total alongside Mitsui, Oil India, ONGC Videsh Limited, Bharat Petroleum, PTT Exploration, as well as Mozambique’s national oil and gas company ENH. Financial close of the project is expected within the first half of 2020.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
In June 2019, the group of investors reached final investment decision on the project, which has a price tag in excess of $20 billion, thus enabling the initial commercialization of one of the world’s most important gas discoveries in the past two decades.
The LNG liquefaction plant will have a production capacity of 12.88 MTPA and it is the first of several LNG trains expected to undergo development in the northern part of the country.
The Project also aligns with three of the Bank’s ‘High 5’ Strategic Priorities
- Industrialize Africa, through the anticipated industrial activity that domestic gas may generate in Mozambique and the larger Southern Africa region;
- Light Up and Power Africa, through the availability of gas to fuel power generation locally and regionally;
- Improving the Quality of Life for the People of Africa, through the creation of thousands of jobs, local SME linkages, and gender empowerment, in addition to the positive impact on macroeconomic stability and the overall regional integration dynamics.
The Project has already signed eight long-term off-take contracts with LNG players, such as Bharat, Centrica, China offshore state-owned oil & gas producer CNOOC, Taiwan’s CPC Corporation, Electricite de France EDF, JERA, Pertamina, Shell, Tohoku Electric, and Tokyo Gas.