Panafrican News Agency

AfDB board approves US$400 million support for Mozambique's natural gas player

Abidjan, Cote d'Ivoire (PANA) - The African Development Bank (AfDB) has approved a long-term Senior Loan of US$400 million to support the building of an integrated Liquefied Natural Gas (LNG) plant, including a liquifaction facility in Mozambique.

According to the media channel of the AfDB, a further financial loan deal was approved by the African Development Bank's board of directors.

The Mozambique LNG Area 1 Project, the Bank said is ranked Africa’s single largest Foreign Direct Investment to date, comprises a global team of energy developers and operators,.

The energy developers and operators are 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.

By its approval, the African Development Bank says it joins a global syndicate of commercial banks, development finance institutions, and export credit agencies, to jointly provide the requisite senior debt

AfDB President Akinwumi Adesina said: “Through its participation, the African Development Bank again demonstrates its leading role in supporting Africa’s transformation.

''The catalytic effect brought about by the Bank is strategically aimed to help transform Mozambique from developing to developed nation.”

He said working closely with the Government of Mozambique, the Bank  can ensure that the local population reaps the benefits from its nascent natural gas value-chain.

It will also create growth opportunities and widespread industrialization, while at the same time accelerating regional integration across Southern Africa,” Adesina added.

In June this year, the group of investors reached final investment decision on the project, which carries a price tag in excess of $20 billion, the Bank says.

This facilitates the initial commercialization of one of the world’s most important gas discoveries in the past two decades.

The LNG liquefaction plant will have a production capacity of 12.88 MTPA.

The Project is the first of several LNG trains expected to undergo development in the northern part of the country.

Mozambique is expected to become one of the world’s largest LNG exporters and its gas represents an important source of supply diversification, which stands to benefit global energy markets.

-0- PANA DJ/VAO 26Nov2019