Mozambique: Government approves financing structure of Rovuma gas project

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Mozambique: Government approves financing structure of Rovuma gas project

12:31 CAT | 05 Jun 2019

File photo: Lusa

Mozambique’s cabinet meeting on Tuesday approved a financing structure of liquefied natural gas (LNG) that the consortium led by US Anadarko is to develop in the Rovuma basin, northern region.

The cabinet meeting spokesperson, Augusto de Sousa, said in a press conference that the executive approved the proposal for the project of LNG Golfinho Atum to be funded in $14 billion (€12.8 billion) by bank funds and $11 billion (€9.7 billion) by the concessions’ shareholders equity.

“This project is estimated at $25 billion (€22 billion),” said Sousa.

Sousa said that the consortium of Area 1 of the Rovuma basin is to make an announcement of the final investment decision (FDI) on the 18 June in Maputo.

Anadarko leads the first onshore LNG project in Mozambique. The group of companies will explore the natural gas found in the depths of the Earth’s crust, under the seabed, 16m off the province of Cabo Delgado.

After extracted, through wells, the gas is to be routed through pipelines to the industrial zone (which has had been building infrastructures for a year and a half), in the Afungi Peninsula, where it is to be transformed into a liquid and shipped out of the country on cargo ships with special containers for export.

The plan foresees two liquefaction lines, installed ashore, and with an annual production capacity of 12 million tonnes per year of LNG.

In addition to Anadarko, which leads the consortium with 26.5%, the group operating Area 1 includes Japan’s Mitsui (20%), India’s ONGC (16%), Mozambican oil company ENH (15%), with smaller holdings to other two Indian companies, Oil India Limited (4%) and Bharat Petro Resources (10%) and Thailand’s PTTEP (8.5%).

Source: Lusa