Maputo – The financing of Rovuma’s Area 1 natural gas exploration project in northern Mozambique began to be launched with commercial banks internationally, the Minister of Mineral Resources and Energy announced today.
“I was pleased to learn that the financing of the project was launched in the commercial banking market, a milestone that represents the maturity of the venture,” said Max Tonela, during a meeting in Maputo with export credit agencies – designated in the market by the acronym, ECA – Export Credit Agencies.
These are credit institutions that will support the financing of US $ 12 billion for the first two liquefaction lines to be installed on the Afungi Peninsula, in the province of Cabo Delgado, with a production capacity of 12 million tons per year of liquid natural gas (LNG) by the consortium led by US oil company Anadarko.
“As far as I know, each one of you will now begin the approval process by the respective administrations to provide their respective installments of funding. That’s great news, “he said, addressing financial institutions.
At today’s meeting in Maputo, the Government reiterated, through Max Tonela and the Minister of Economy and Finance, Adriano Maleiane, the “strong commitment” to the Area 1 project.
To that end, the Minister of Mineral Resources and Energy announced that the Mozambican executive has approved a plan to support the project.
“A project support plan was signed last week,” with three goals aimed at speeding up the whole process, he said.
The first objective provides for “Government support for the timely implementation” of the enterprise, followed by “adoption and implementation of necessary measures to renew and approve permits, work permits and visas in time, as well as to import and export goods and services efficiently. ”
The plan further cautions “the speedy resolution of any issues or disputes that may arise.”
Construction works on the Afungi peninsula in Cabo Delgado are already “formidable”, pending the final investment decision in the first half of next year to start construction of the LNG plant.
Area 1 has already guaranteed the sale of 9.5 million tons of gas per year “and, thanks to each one of you, a mega financing about to be realized”, said Max Tonela, addressing the ECA.
In reiterating the government’s commitment to the project, the minister also referred to the “firm commitments of the President of the Republic, Filipe Nyusi, to strengthen and consolidate the political stability that Mozambique has won over the last 25 years.”
The consortium that operates Area 1 consists of North American Anadarko (26.5 per cent), Japan’s Mitsui (20 per cent), Indian ONGC (16 per cent) and Mozambican state oil company ENH (15 per cent), to two other Indian companies, Oil India Limited (4 per cent) and Bharat Petro Resources (10 per cent), and Thai PTTEP (8.5 per cent).
