French oil giant, Total has secured $14.9 billion in senior debt financing for its landmark Mozambique Liquefied Natural Gas (LNG) development, in spite of current disruptions to the oil and gas market and the deep of global oil prices.
Mozambique Liquefied Natural Gas (LNG) represents the largest foreign direct investment in Africa to date, with a total post-FID investment of $20 billion and $14.9b in project financing.
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Contributions from Financial Institutions
A report said the project received direct and covered loans from eight export credit agencies, 19 commercial bank facilities and a $400 million loan from the African Development Bank (AfDB).
“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,”
Jean-Pierre Sbraire, Chief Financial Officer of Total
He explained that the development 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,” the Total chief stated.
Also Read: Falling Global Oil Price: Mozambique Cuts Energy Costs
Financial close is expected by the end of September, with first fuel cargoes to be delivered in 2024.
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By Chibisi Ohakah, Abuja
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