$400m loan to be Funded in Mozambique for LNG project- AFDB
The African Development Bank (AfBD) is the latest financial institution to confirm funding for the $ 20 billion liquefied natural gas project in Mozambique (LNG) developed by a Total-led consortium in northern Mozambique.
In a statement released, the development finance institution announced that it had signed a $ 400 million senior loan for the project, which had received a total of $ 14.9 billion in funding from eight export credit agencies, 19 commercial banks and development finance institutions.
The project is expected to complete financially in late 2020, despite growing concerns about violence in the territory.
Led by Total from France, Mitsui, Oil India, ONGC Videsh Limited, Bharat Petroleum, PTT Exploration and the national oil and gas company in Mozambique, ENH, are involved in the project.
The LNG project in Mozambique will initially consist of two LNG trains with a total capacity of around 13 million tons per year. The LNG is mainly exported to customers in Asia and Europe.
The AfDB said in a statement that the LNG Area 1 agreement in Mozambique could usher in a new era of industrialization for Mozambique and could also facilitate gas flow development for Mozambique and the region.
The bank also stressed that it had played a role in ensuring that the project met stringent environmental and social standards and that development was in line with its country strategy for Mozambique, which aimed to develop natural resources and invest in one use sustainable infrastructure effectively.
