Total has announced its securement of $14.9 billion in senior debt financing for its landmark Mozambique LNG development, in spite of current disruptions to the oil and gas market.
With a total post-FID investment of $20 billion and $14.9 in project financing, Mozambique LNG represents the largest foreign direct investment in Africa to date. The project received direct and covered loans from eight export credit agencies, 19 commercial bank facilities and a $400 million loan from the African Development Bank.
“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,” said Jean-Pierre Sbraire, Chief Financial Officer of Total.
“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.”
Serving as the first onshore LNG development in the country, Mozambique LNG involves the development of the Golfinho and Atum fields located in Offshore Area 1 concession and the construction of a two-train, 13.1 million-tpy liquefaction plant.
Financial close is expected by the end of September, with first fuel cargoes to be delivered in 2024.