Page 13 - GLNG Week 31

GLNG AFRICA GLNG

Afreximbank commits to Mozambique LNG

INVESTMENT THE African Export-Import Bank (Afrex- in an environmentally and socially sustainable
imbank) is to commit up to $400mn in guar- manner and that it operates responsibly, protect-
antees and direct lending to support the Area 1 ing the environment, as well as the health and
LNG Project in Mozambique. safety of the public, employees and contractors.
The total project is estimated to cost about The $400mn commitment to the project is in
$24bn and is set to be one of the largest private line with Afreximbank’s strategy of promoting
foreign direct investments (FDIs) in Africa, and intra-African trade as well as industrialisation
one of the largest LNG projects in the world. It and export development.
will play a key role in Mozambique’s economic The guarantee is being done jointly with
growth and support the wider region. Export Credit Insurance Corporation of South
The $400mn will be used to partially finance Africa (ECIC), which has enabled a significant
the project development activities required African contribution to the overall financing of
to extract natural gas offshore, its transfer to the project.
onshore processing facilities and then its con- This joint collaboration is offered under
version to LNG for export to various markets the South Africa-Africa Trade and Investment
around the world. Promotion Programme (SATIPP), launched in
“We are confident the Mozambique LNG 2018, to promote and expand trade and invest-
project will create opportunities for the people ments between South Africa and the rest of the
of the country and drive sustainable economic continent.
growth. We believe that the success of projects In line with Afreximbank’s strategy of using
such as this will create a precedent through partnerships to promote trade and investments
which other development projects in Africa can in Africa, Afreximbank is once again deploying
secure funding and gain international traction. its ECA-Plus guarantee, offered under the Afrex-
We are delighted to be one of the key stakehold- imbank Guarantee Programme (AFGAP), to
ers involved in this project, which will accelerate support this project.
the rate of growth of intra-African trade,” said The ECA-Plus Guarantee facilitates collabo-
Benedict Oramah, president of Afreximbank. ration between Afreximbank and global export
The Mozambique Area 1 LNG project is an credit agencies where Afreximbank uses its guar-
integrated LNG development that will initially antee to share risk with ECAs in African related
comprise two LNG liquefaction trains – each transactions and projects by way of co-guaran-
capable of processing 6.44mn tonnes per year tees and re-guarantees. The objective is to help
(tpy). create capacity, reduce risk and unlock capital for
A key focus is for the project to be developed African trade and investments.™

Renergen completes design work for LNG plant

PROJECTS & SOUTH Africa’s Renergen said last week that it Once the gas liquefaction plant comes
COMPANIES had completed design work on its planned gas online, Renergen will halt production of CNG
liquefaction plant 22 days ahead of schedule. and switch to LNG. The company has already
In a statement, the company described the plant arranged to work with a unit of France’s Total to
design as the fourth major milestone in its Vir- promote the use of LNG as a fuel for long-haul
ginia gas project. Achieving this goal is in line with trucking. Total will use its filling stations along
efforts to launch LNG production in 2021, it said. the Johannesburg-Durban section of the N3
Renergen is building its LNG plant in two highway to distribute LNG from the first phase
stages. The first stage will involve connecting the of its South African partner’s plant.
company’s natural gas wells near Welkom, Vir- The second stage of Renergen’s LNG plant is
ginia and Theunissen in Free State to a new pipe- due to begin production in 2023. Part of the pro-
line. It will also encompass the construction of duction from the second stage will distributed in
the gas liquefaction plant and of a helium plant. Total retail outlets along all South Africa’s major
The latter facility will take advantage of the highways, and the remaining volumes will be
fact that Renergen’s gas fields contain an unu- sold to other buyers.
sually high concentration of helium. Sproule, Renergen recently held South Africa’s first
an international energy consulting firm, has LNG auctions. It announced the start of the sales
estimated that they may hold as much as 9.74bn on July 20, saying it would accept offers for future
cubic metres of helium, a quantity that exceeds production streams of LNG and helium from its
the total proven reserves of North America. plant until August 28.™

Week 31 07•August•2020 www. NEWSBASE .com P13