Total Secures $15 billion Funding for Mozambique LNG Project

French oil major Total has secured approximately $15 billion in financing for the Mozambique liquefied natural gas (LNG) project, which is estimated to be worth more than $20 billion.

Total, along with 20 lenders, have reached an agreement for the first phase of senior debt funding of $14.4 billion. Total expects the financing to be closed in the third quarter of this year. The signing of the $15 billion financing deal was scheduled for June and involves banks including, the Standard Bank Group, Société Générale SA and Rand Merchant Bank.

The U.S. Export-Import Bank has approved the $4.7 billion loan to the project, and the Japan Bank for International Cooperation will provide $3 billion.

Total acquired Anadarko’s 26.5% interest in the LNG project in September last year for $3.9 billion. The project is expected to produce 12.9 million tons of LNG per annum, with first LNG expected to come on stream in 2024. Offshore Area 1 contains more than 60 trillion cubic feet (tcf) of gas resources, of which 18 tcf will be developed with the first two trains.

Approximately 90% of the LNG production from the project is already sold to Asian and European buyers. Other partners in the joint venture include the state-owned energy company ENH, Mitsui from Japan, PTT from Thailand and India’s ONGC Videsh, Bharat Petroleum Resources and Oil India.

Operations at the Mozambique LNG project have been suspended to contain the spread of COVID-19.