( 3 minutes)
· The Development Bank of Southern Africa will fund about R2 billion flagship Mozambique Liquefied Natural Gas (LNG) project
· The DBSA said it would finance US$120 million (about R2
billion at current exchange rates) of Mozambique’s Area 1 LNG project
· The project is expected to cost approximately US$24 billion in total
The Development Bank of Southern Africa will fund about R2 billion flagship Mozambique Liquefied Natural Gas (LNG) project.
The project implemented by the French giant, Total, will explore about 150 trillion cubic feet of gas reserves in Mozambique. Total is expected to supply LNG in 2024. The project has attracted funding commitments from several quarters such as banks, development finance institutions and export credit agencies around the world.
The DBSA said it would finance US$120 million (about R2 billion at current exchange rates) of Mozambique’s Area 1 LNG project. The project is expected to cost approximately US$24 billion in total.
Other local funders who have committed to finance the project include Standard Bank, Rand Merchant Bank and Absa. Recently, Total announced that it had signed a US$14.9 billion senior debt financing agreement for the project. Its funding will be used for up and downstream projects before conversion to LNG for export. The project, the bank authorities say, would present significant opportunities for South African equipment suppliers and other service providers, as well as gas export opportunities.
