Japan Bank for International Cooperation (JBIC) has signed on a loan agreement
in project financing amounting up to USD3 billion with MOZ LNG1 FINANCING
COMPANY LTD in Abu Dhabi, United Arab Emirates. The loan is extended under
JBIC’s Growth Investment Facility. It is co-financed with the African
Development Bank (AfDB), the Export-Import Bank of the United States, UK Export
Finance, the Export-Import Bank of Thailand as well as 21 private financial
institutions, bringing the total co-financing amount to USD14.4 billion. Part
of the co-financing loans provided by private financial institutions is insured
or guaranteed by Nippon Export and Investment Insurance (NEXI), UKEF, SACE
S.p.A. (SACE) of Italy, the Export Credit Insurance Corporation of South Africa
Soc Ltd (ECIC), as well as Atradius Dutch State Business N.V.
this project, Mitsui & Co., Ltd., and the Japan Oil, Gas and Metals
National Corporation (JOGMEC), jointly with Total S.A. of France, Empresa
Nacional de Hidrocarbonetos E.P. of Mozambique and others, will develop the
Golfinho/Atum gas field in the northernmost part of Mozambique; transport feed
gas through subsea gas pipeline to the onshore liquefaction plant to be
constructed; and produce and sell liquefied natural gas (LNG) with an annual
production capacity of 13.12 million tons. The loan is intended to finance
mainly the development of the gas field and production of LNG in the project.
gas produces less greenhouse gases than other fossil fuels and mitigates
environmental impacts. Global demand for LNG is projected to grow in the
future, driven by increasing demand in developing countries and rising
environmental awareness. In the Strategic Energy Plan released in July 2018,
the Japanese government recognized that one of its most crucial policy agendas
is to secure the stable supply of natural gas to Japan. Japanese utility
companies are expected to offtake approximately 30% of the LNG produced by this
project, and this will represent Japan’s first import of LNG produced in
Mozambique. As such JBIC’s support for this project will contribute to securing
stable supplies of LNG and to diversifying LNG supply sources for Japan.
Also, under the LNG sales and purchase agreements for this project, flexible destinations clauses have been introduced and a joint procurement framework has been adopted between Japanese and foreign off-takers. In the Strategy for LNG Market Development published by the Japanese government in May 2016, such flexibility in LNG sales and purchases agreements is one of the main themes earmarked for active support. JBIC, through its provision of this loan, will contribute to the optimization of LNG procurement by Japanese utility companies by supporting the formation of a more flexible LNG market.
Mozambique Rovuma LNG is the country’s first onshore LNG development. Total is the operator with a 26.5 percent participating interest alongside ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 (20 percent), ONGC Videsh (10 percent), Beas Rovuma Energy Mozambique (10 percent), BPRL Ventures Mozambique (10 percent), and PTTEP Mozambique Area 1 (8.5 percent).
Oilfieldafricareview offers you reviews and news about the oil industry.
Get updates lastest happening in your industry.
Thank you for subscribing...