Mitsui inks $894 million Mozambique LNG loan with JBIC, other lenders

Japanese trading house Mitsui & Co has recently signed a deal with compatriot JBIC and other private financial institutions to loan about $894 million for the development of the Total-led Mozambique LNG project.

The Japan Bank for International Cooperation said in a statement it signed the loan agreement with the trader on February 16. JBIC will provide $536 million out of the total amount.

Moreover, JBIC said Mitsui plans to use the loan towards financing the development of offshore gas fields in Mozambique’s Area 1, but also the 12.8 mtpa liquefaction plant under construction at the Afungi complex in Palma in northern Mozambique. Mitsui owns a 20 percent stake in Mozambique LNG with partner Jogmec.

Besides Total and the Japanese companies, other partners in the giant LNG project include Mozambique’s ENH, Thailand’s PTT, and Indian firms ONGC, Bharat Petroleum, and Oil India.

According to JBIC, Japanese utilities would offtake about 30 percent of the LNG produced by this project.

“JBIC’s support for this project is therefore expected to contribute to securing stable supplies of LNG, which is an important energy resource for Japan,” the bank said.

To remind, the Total-led LNG export development signed a large $14.9 billion senior debt financing deal in July last year with eight export credit agencies and 19 commercial bank facilities, including JBIC that will provide around $3 billion.

The total project costs will reach around $20 billion, according to Total.

Still on track for 2024

Total’s chief executive Patrick Pouyanne said last month the project was still on track to produce LNG in 2024 despite security concerns in the region.

The CEO said the project had reached a 21 percent completion at the end of last year.

CCS JV, a venture between Saipem, McDermott, and Chiyoda, builds the project as the main EPC contractor.

In addition, the project will also have a fleet of dedicated LNG carriers.

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