· Mozambique Government has offered a $2.25 billion guarantee to partners in Mozambique LNG
· According to the guarantee, which is valid for five years, the government will pay the state oil company’s equity share if required
Portuguese media has reported that the Mozambique Government has offered a $2.25 billion guarantee to partners in Mozambique LNG, the $20 billion gas project led by Total. It is one of the many LNG developments projects in the region after a massive gas finds off Mozambique’s coast.
According to the guarantee, which is valid for five years, the government will pay the state oil company’s equity share if required. It is also reported that Carlos Zacarias, president of Mozambique’s regulator, the National Petroleum Institute (INP), said that state financing had been secured and that the partners have agreed to accept a $2.25 billion government guarantee in lieu of an immediate equity contribution from state-run National Hydrocarbon Company (ENH). The project is expected to start production in 2024. ENH has a 15% interest and Total, the French energy major owns 26.5% after acquiring its stake from Anadarko for $3.9 billion in 2019. The Total has secured $15 billion in funding for the project. Signing for the financing is scheduled to take place on June 30
