Loan arrangements for ENH completed by September

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Loan arrangements for ENH completed by September

9:28 CAT | 09 Aug 2019

File photo: O País

The loan package of two billion US dollars which Mozambique’s National Hydrocarbon Company (ENH) needs to guarantee its participation in the liquefied natural gas (LNG) project in Area One of the Rovuma Basin, off the coast of the northern province of Cabo Delgado, should be finalised by September, according to ENH chairperson Omar Mitha, cited by the independent television station STV.

“I cannot reveal the details of the operation now, but it is a loan granted by a banking consortium”, he said.

As for using the gas contracts as collateral, as part of the guarantee demanded by the financing banks, Mitha said this was normal procedure in this type of operation.

President Filipe Nyusi laid the first stone for the construction of the LNG plant in the Cabo Delgado district of Palma on Monday.

The United States company Anadarko holds 26.5 per cent of the Area One project and is the operator. Its partners in the Consortium are the Japanese company Mitsui (20 per cent), PTTEP of Thailand (8.5 per cent), the three Indian companies ONGC Videsh, Bias Rovuma Energy, and BRPL Ventures (each with ten per cent), and ENH (15 per cent).

ENH also has a ten per cent participation in Area Four of the Rovuma Basin, and the onshore part of this LNG project is led by the giant US corporation ExxonMobil. Mitha said that the ENH participation in this project will also be guaranteed by a bank loan.

Mitha also told STV that about 33 per cent of the electricity generated in Mozambique comes from gas fired power stations. This gas is from the Pande and Temane onshore fields in the southern province of Inhambane, which are operated by the South African petrochemical giant Sasol.

The bulk of the power generated in the country, however, still comes from the Cahora Bassa dam on the Zambezi river, in the western province of Tete.

Source: AIM