Total-led liquefied natural gas project, Mozambique LNG, has reportedly been offered a five-year, $2.25 billion funding guarantee from the Mozambican government.
Partners at the $20 billion onshore project are said to have agreed to the guarantee in lieu of an immediate equity contribution from state-run National Hydrocarbon Company (ENH). The company owns a 15% stake in the joint venture led by Total with a 26.5% stake.
Other partners include Japan’s Mitsui, Thailand’s PTT, India’s ONGC Videsh, Bharat Petroleum Resources, and Oil India.
The Mozambique LNG project is planned to produce 12.9 million tonnes per annum (Mtpa) of LNG, with operations slated to begin in 2024. The two-train liquefaction plant in northern Mozambique will process natural gas produced in the Golfinho and Atum fields, offshore Area 1.
The JV hasn’t commented on the guarantee or previous reports of it securing $15 billion in funding for the project. The signing of the financing deal involving 20 banks is expected by month-end, Kallanish Energy learns.
This post appeared first on Kallanish Energy News.