French energy giant Total SA on Friday said it had signed a $14.9 billion senior debt financing agreement to fund its LNG project in Mozambique. The financing includes direct and covered loans from the African Development Bank, 19 commercial banks, and eight export credit agencies.
UK Export Finance (UKEF), one of the financing contributors, was reportedly considering committing around $800 million of funding. Other financing contributors include Italy’s SACE, the Netherlands’ Atradius, Nippon Export and Investment Insurance, Japan Bank for International Cooperation, the Export-Import Bank of Thailand, the Export-Import Bank of the United States, and the Export Credit Insurance Corporation of South Africa.
Total’s CFO Jean-Pierre Sbraire said the signing signifies financial institutions’ optimism on the long-term prospect of LNG projects in Mozambique. Total’s investment in the Mozambique LNG project is worth $20 billion. The project includes the construction of a two-train liquefaction plant with a capacity of 13.1 million tons/year and the development of the Atum and Golfinho natural gas fields in the Offshore Area 1 concession.
Previously, ExxonMobil deferred the final investment decision on its Rovuma LNG gas project in Mozambique because of the COVID-19 pandemic. Mozambique authorities expected the decision would be made next year.
