French oil major Total has reportedly secured roughly $15 billion in financing for Mozambique LNG – a project it operates with a 26.5% share acquired from Anadarko, Kallanish Energy learns.
The $20 billion project in northern Mozambique will produce 12.9 million tonnes per annum (Mtpa) of LNG, with first LNG slated for 2024. The two-train liquefaction plant will process natural gas produced in the Golfinho and Atum fields, offshore Area 1.
Both local and international media outlets reported Total’s funding was sorted and would soon be announced, citing unnamed sources. The company didn’t comment on the reports.
Bloomberg said earlier this week the signing of the $15 billion financing deal was scheduled for June. The package involves 20 banks, including the Standard Bank Group, Societe Generale SA and Rand Merchant Bank, it said.
Reuters said on Wednesday Total has reached an agreement with a group that includes 20 lenders for the first phase of senior debt funding of $14.4 billion. It added Total expects the financing to be closed in the third quarter.
Mozambican Jornal Noticias reported earlier that the U.S. Export-Import Bank has approved the $4.7 billion loan to the project, while the Japan Bank for International Cooperation would provide $3 billion.
Works at the Mozambique LNG project have been halted to contain the spread of the coronavirus, after its onshore construction site became the epicenter of the outbreak in the country.
Roughly 90% of the LNG production to come from the project is already sold to buyers in Asia and Europe. Other partners in the joint venture include state energy company ENH, Japan’s Mitsui, Thailand’s PTT and India’s ONGC Videsh, Bharat Petroleum Resources and Oil India.
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