The Mozambique LNG Project, led by French multinational oil company TotalEnergies has just received a green light from US Export-Import Bank, a US government credit agency, by approving the financing of approximately US$5 billion.
The approval of this credit is a catalyst for the completion of the project financing process, only waiting for the approval of additional credit from other creditors in the coming days. Nevertheless, this new development for the Rovuma LNG Project whose magnitude, places the largest external investments in Africa, gives a new impetus to the intention to start with the production of liquefied natural gas in 2029, which will reposition Mozambique as a player detachable in the concert of nations producing and exporting liquefied natural gas worldwide.
It should be noted that the project already had its funding confirmed. However, with the declaration of the Major Force and consequent cessation of activities in 2021 due to the insurgency caused by terrorist actions in Cabo delgado, it needed to be re-approved.
Stephen Pale, Minister of Mineral Resources and Energy, quoted by Reuters in an interview with the Financial Times, said that he also expects the United Kingdom and the Netherlands to reconfirm their support for the project.
Mr Bangalane, Chairman of the INP Board of Directors responded to the news of financing with optimism and satisfaction, stating that the reconfirmation of this credit sends a positive signal to the whole sector, markets and especially the national business community, which with the resumption of this project hopes to have a substantial participation in the supply chain of goods and services. It also stressed that the LNG project has the potential to transform Mozambique's economy by creating new jobs transfer skills and technology and revenue collection to the state with very important fiscal repercussions for the country.
The project in the Rovuma Basin, in which the French company has a share of 26.5%, has the capacity to produce 13 million tonnes of LNG per year.
For more information, please contact the National Institute of Petroleum, located on Rua dos Desportistas No.259, Maputo, by numbers 21248300 or 839511000. You can also write to e-mail comunicacao@inp. gov.mz and visit our Facebook and LinkedIn pages to be aware of this and other outstanding subjects.
