Total completes $14.9bn financing for LNG project in northern Mozambique

French oil major Total has secured $14.9bn in financing from several banks for its liquefied natural gas (LNG) project in northern Mozambique.

The Mozambique LNG Project is being developed following the discovery of a large natural gas quantity off the coast of northern Mozambique in 2010.

It is operated by Total and comprises a global team of energy developers.

Other partners in the project include Mitsui, Oil India, ONGC Videsh, Bharat Petroleum, PTT Exploration, as well as Mozambique’s national oil and gas company ENH.

The project involves the development of Golfinho-Atum gas field located offshore Area 1 Block of the deep-water Rovuma Basin.

According to Total, the financing involves direct and covered loans from eight Export Credit Agencies (ECAs) and 19 commercial bank facilities. It also includes a loan from the African Development Bank (AfDB).

Total raised ECA direct loans from UK Export Finance, the Export-Import Bank of the United States (US-Exim), Japan Bank for International Cooperation (JBIC) and Export-Import Bank of Thailand (Exim Thailand).

Atradius Dutch State Business, the Export Credit Insurance Corporation of South Africa Soc (ECIC), SACE as well as Nippon Export and Investment Insurance (NEXI) also participated in the financing.

Total chief financial officer Jean-Pierre Sbraire said: “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.”

The project is estimated to generate approximately $50bn in revenue for the Government of Mozambique in 25 years.

In June last year, the project partners announced the final investment decision (FID) of $20bn for Rovuma Offshore Area-1 of the Mozambique LNG project.

The project is currently on track to be commissioned by 2024.

In November last year, the African Development Bank (AfDB) approved a $400m loan to support the construction of the integrated LNG plant and a liquefaction facility in Mozambique.