Despite the slowdown in energy investment, Total SA’s Mozambique liquefied natural gas (LNG) project’s funding has completed.
The current biggest foreign direct investment (FID) in Africa has as much as USD16 billion in funding completed with financial close is targeted by the end of September.
The funding involved several banks with law firm White & Case LLP advised the financiers. The African Development Bank will provide USD400 million in senior loans and the Japan Bank for International Cooperation signed a loan agreement for as much as USD3 billion.
Other than those two, the Export-Import Bank of the US and Oil India Ltd. also confirmed the financing.
The Mozambique LNG project is targeted to generate roughly USD50 billion of revenue for Mozambique’s government for the next 25 years. It involves several other partners such as Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos, Mitsui & Co Ltd., ONGC Videsh Ltd., PTT Exploration and Production Pcl and Bharat Petroleum Corp.
However, the USD23 billion project is still facing challenges including the location in an unstable area security-wise.
