African Development Bank set to join $20 billion Mozambique LNG financing

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. Become our exclusive member and help us keep our quality news free and available for all.

The African Development Bank has concluded its bid to co-finance the construction of Mozambique’s integrated Liquefied Natural Gas (LNG) plant by signing a senior loan of $400 million for the transformational project.

The Mozambique LNG Area 1 Project, estimated to cost over $20 billion, is ranked Africa’s single largest foreign direct investment to date. It comprises a global team of energy developers and operators, led by Total alongside Mitsui, Oil India, ONGC Videsh Limited, Bharat Petroleum, PTT Exploration, as well as Mozambique’s national oil and gas company, ENH.

With the signing on 15 July, the Bank joins a global syndicate of commercial banks, development finance institutions and export credit agencies to provide the requisite financing for the project. Financial close is expected later in 2020.

The project, which benefits from one of the world’s largest natural gas reserves off the coast of northern Mozambique, will be the country’s first liquefied natural gas development. It will initially consist of two LNG trains with a total capacity of around 13 million tons per annum.

Read full article

As well as being transformational for the energy sector in Mozambique, the project is expected to have broader socio-economic benefits for the country.

“Signing the Mozambique LNG Area 1 agreement heralds a new age of industrialization for Mozambique,” said Abdu Mukhtar, the Director of the Bank’s Industrial & Trade Development Department. He noted that gas purchasers, such as fertilizer plants, had the potential for improving regional and global competitiveness.

The project comprises both onshore and offshore components, which will be funded by a combination of equity, pre-completion cashflows and over $14 billion in senior debt facilities. The senior debt consists of a mix of Export Credit Agency (ECA) direct loans, commercial bank loans and the facility from the Bank, the only multilateral development institution involved in the project’s first phase.

Wale Shonibare, the Bank’s Director for Energy Financial Solutions, Policy and Regulation, said the project would create a new energy model in Mozambique and help to electrify Southern Africa.” Through the availability of domestic gas, the project stands to facilitate the development of gas-fired electricity in Mozambique. This will play a key role in providing reliable and affordable energy for the country and the wider region,” said Shonibare.

The Bank played a crucial role in requiring compliance with strict environmental and social standards, in addition to working on SME and gender-development in Mozambique and promoting adherence to international best practices. The Bank’s involvement is consistent with its country strategy in Mozambique, which aims to leverage natural resource development and investment in sustainable infrastructure.

Overall, the project will improve livelihoods, spur economic growth and boost universal electricity access, in line with one of the Bank’s High 5 strategic priorities, Light Up and Power Africa, Bank officials said.

The Bank’s Acting General Counsel, Souley Amadou, commented: “This is a first in class transaction that sets a new standard for mega-projects on the African continent. The collaboration and unity of purpose between the sponsors, Government of Mozambique, the financing parties and advisors were truly remarkable.”
TODAY NEWS AFRICA
TODAY NEWS AFRICAhttps://todaynewsafrica.com
TODAY NEWS AFRICA is registered and headquartered in Washington, District of Columbia, United States of America. Our publication is widely read, respected and influential. By providing daily answers to questions our readers have about the people, the businesses and the continent of Africa, we are reaching a diverse and wide audience from around the world. Our readers, many of them world leaders, trust us because we are independent and truthful. Our advertisers understand the difference between news, views and ads. Contact us: contactus@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

MOST POPULAR

Nigeria-born former Florida State basketball big man Michael Ojo dies of heart attack in Serbia at 27

Nigeria-born former Florida State basketball big man Michael Ojo died of a heart attack in Serbia on Friday. He was only...

Ivory Coast President Alassane Ouattara says he’s now running for re-election after saying he would not seek third term

Ivory Coast President Alassane Ouattara announced on Thursday evening that he was running for re-election. The presidential election would take place...

South African President appoints committee to investigate COVID-19 corruption

South African President Cyril Ramaphosa has, following a decision taken by Cabinet at its meeting of Wednesday, August 5, 2020, appointed...

68 percent of people who contracted COVID-19 in Africa have recovered while five countries – South Africa, Egypt, Nigeria, Ghana and Algeria account for 75 percent of all cases

About 68 percent of people who contracted COVID-19 in Africa have recovered, the Africa CDC announced at a briefing on Thursday.

WHO ramps up COVID-19 support to hotspot countries in Africa

The first members of a surge team of health experts from the World Health Organization (WHO) have arrived in Johannesburg, South Africa,...
- Advertisement -

LATEST STORIES

Watch President Donald Trump’s latest explosive interview in full where many of his lies were debunked

In this explosive interview, President Donald Trump discusses his mishandling of the coronavirus pandemic, the upcoming election, the human rights icon,...

CDC warns 182,000 Americans could die from coronavirus by August 22 with up to 11,000 expected to die in a single week in August. One American now dies every minute from COVID-19

As many as 182,000 Americans could die from coronavirus by August 22, the Centers for Disease Control and Prevention predicted in...

African leaders should denounce Zimbabwe’s crackdown on peaceful anti-corruption protests, Human Rights Watch says

The Southern African Development Community (SADC) and the African Union should urgently and publicly speak out against the Zimbabwe government’s crackdown on peaceful...

From Egypt to India, Iran to Turkey and elsewhere, governments continue to arrest and jail human rights defenders in virus-hit prisons, Amnesty International laments

Governments who were lauded for releasing prisoners in response to COVID-19 outbreaks have excluded human rights defenders from the measures and...

COVID-19 emergency committee highlights need for response efforts over long term – Statement

The Emergency Committee on COVID-19, convened by the WHO Director-General under the International Health Regulations (2005) (IHR), held its fourth meeting...

[/read_more]

Read full article

error: Alert: Content is protected !!
Share
Tweet
Share
Reddit
WhatsApp