Mozambique LNG project : Total signs $14.9bn financing agreement


French oil and gas giant Total has secured financing for the $20 billion Mozambique LNG project with the signing of a $14.9 billion senior debt financing.

The project, which represents the first onshore LNG development in Mozambique, calls for the development of the Golfinho and Atum natural gas fields in Offshore Area 1 concession and the construction of a liquefaction plant with a total capacity of 13.1 million tons per annum from a couple of trains.

According to Total, the project financing comprises direct and covered loans from eight export credit agencies (ECAs), 19 commercial bank facilities, and also a loan from the African Development Bank.

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The ECAs taking part in the financing of the Mozambique LNG project include Export Import Bank of the United-States (US-Exim), Japan Bank for International Corporation (JBIC), UK Export Finance (UKEF), Nippon Export and Investment Insurance (NEXI), Export Credit Insurance Corporation of South Africa (ECIC), Servizi Assicurativi del Commercio Estero of Italy (SACE), Export-Import Bank of Thailand (EXIM Thailand), and Atradius Dutch State Business (Atradius).

Total signs $14.9bn financing agreement for the Mozambique LNG project.

Total signs $14.9bn financing agreement for the Mozambique LNG project. Photo courtesy of I Tangopaso/

Jean-Pierre Sbraire – Chief Financial Officer of Total 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.

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“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.”

Total is the operator of the Mozambique LNG project with a stake of 26.5% held through its fully-owned subsidiary Total E&P Mozambique Area 1. The other partners of the LNG project are ENH Rovuma Área (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh Rovuma (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).

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