French energy major Total has signed a US$14.9 billion (€13.1 billion) debt financing agreement to develop Mozambique LNG, the country’s firsts onshore LNG development.
Mozambique LNG, in Cabo Delgado Province, will process gas from Mozambique’s 12 billion BOE Offshore Area 1 and will include a two-train liquefaction plant with a capacity of 13.1 million TPA, full containment LNG tanks made from 9% nickel steel with a pre-stressed concrete outer tank, jetty facilities and associated engineering. It also includes developments of the Golfinho and Atum natural gas fields within Offshore Area 1. It is being planned by a Total-led consortium including Mitsui, ONGC Videsh, Empresa Nacional de Hidrocarbonetos (ENC), PTTEP, Bharat Petroleum, and Oil India.
The debt financing is the largest ever agreed in Africa and includes direct and covered loans from eight export credit agencies (ECAs), 19 commercial bank facilities, and a loan from the African Development Bank.
‘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. 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,’ says Jean-Pierre Sbraire, Chief Financial Officer of Total.
Mozambique LNG is expected to begin operations in 2024.
Separately, the Mozambique LNG consortium has awarded the contract to build the marine facilities to a partnership comprising Belgian constructors BESIX and Portuguese engineering and construction company Mota-Engil. The work will include a 2,700 m access jetty, and a 1,900 m wharf out at sea, with four LNG berths, one condensate berth and mooring facilities for large LNG carriers. It will be one of the world’s longest jetty structures at sea. Work is expected to begin shortly.