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    Japan Bank Confirms Mozambique LNG Financing


The final investment decision (FID) on the project was taken in June last year.

by: Shardul Sharma

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Natural Gas & LNG News, Africa, Liquefied Natural Gas (LNG), Premium, Corporate, News By Country, Mozambique

Japan Bank Confirms Mozambique LNG Financing

The Japan Bank for International Cooperation (JBIC) on July 16 confirmed that $14.4bn project financing for Total-led Mozambique LNG has been finalised. New agency Reuters had reported about the financing on July 9.

JBIC on July 15 signed a loan agreement in project financing amounting up to $3bn (JBIC portion) with the Moz LNG 1 Financing Company in Abu Dhabi. The loan is extended under JBIC's Growth Investment Facility. It is co-financed with the African Development Bank, the Export-Import Bank of the United States, UK Export Finance (UKEF), the Export-Import Bank of Thailand as well as 21 private financial institutions, bringing the total co-financing amount to $14.4bn.

Part of the co-financing loans provided by private financial institutions is insured or guaranteed by Nippon Export and Investment Insurance, UKEF, SACE of Italy, the Export Credit Insurance Corporation of South Africa Soc, as well as Atradius Dutch State Business.

Mozambique LNG is targeting 75 trillion ft3 of gas at the Golfinho and Atum gas fields in the Rovuma basin off the Mozambique coast. The $20bn project is due on stream by 2024, and will produce 13mn mt/yr of LNG at full capacity. 

The final investment decision (FID) on the project was taken by Texan producer Anadarko Petroleum in June last year. In September, Total closed a $3.9bn purchase of an operating stake in the project from Anadarko.