Page 7 - GLNG Week 17 2022

GLNG AFRICA GLNG

Mozambique appoints SocGen to serve as

advisor for refinancing Coral South LNG

FINANCE MOZAMBIQUE’S national oil company (NOC) province, have caused delays for two larger
has picked the French bank Societe Generale SA LNG projects targeting nearby gas fields in the
(SocGen) to serve as an advisor in the planned Rovuma basin.
refinancing of its stake in the Coral South LNG TotalEnergies (France), the leader of the
project, which hinges on the development of an Mozambique LNG consortium, halted work
offshore site known as Area 4 in the Rovuma at its onshore construction site about a year
Basin. ago, evacuating all its workers after insurgents
According to Mozambique’s Finance Min- attacked a town just a few kilometres away from
ister Max Tonela, Empresa Nacional de Hidro- its $20bn, 13mn tpy LNG plant. Meanwhile, Exx-
carbonetos (ENH) is in talks with SocGen on onMobil, the leader of the Rovuma LNG group,
financial models for the refinancing deal. These has delayed taking a final investment decision
models concern the Maputo-based company’s (FID) on its $30bn, 15mn tpy facility, partly out
10% stake in Coral South LNG, which is led by of concern over the instability.
Italy’s Eni, he told Bloomberg on April 22. Eni’s Coral South LNG project, however, has
Tonela said ENH was taking this step in been less vulnerable to possible rebel attacks, as
order to take advantage of the fact that natural its FLNG-based infrastructure is all offshore.
gas prices have risen to record highs since Rus- Despite continued concerns about instability
sia’s invasion of Ukraine in late February. The in northern Mozambique, some observers have
Coral South LNG consortium is on track to start recently suggested that TotalEnergies, Exxon-
exporting LNG by October of this year. Mobil and their partners may soon expedite
“Now it’s more attractive for them and less work on their LNG projects in light of the energy
risky to be involved,” he explained. “Now ENH market disruption stemming from Russia’s inva-
has more ability to raise finance to play their role sion of Ukraine in February. The EU is deter-
as a concessionaire.” mined to reduce Russian gas imports as part of
This will not be SocGen’s first foray into its sanctions against Moscow.
Mozambique’s gas sector, Bloomberg noted. Tonela, for his part, said on Sunday (April 24)
The French bank has acted previously as that ExxonMobil should be ready to make the
financial advisor to ENH and served the same FID once TotalEnergies lifts force majeure on its
function for TotalEnergies and South Africa’s own. He was speaking after meeting with repre-
Gigajoule Group with respect to a project involv- sentatives of the US super-major while attending
ing a planned LNG import terminal and thermal the spring meetings of the International Mone-
power plant (TPP) near Mozambique’s capital tary Fund (IMF) and World Bank last week,
city Maputo, the news agency said. according to Bloomberg.
Eni, ENH and their partners – ExxonMobil “They [ExxonMobil] have already resumed
(US), China National Petroleum Corp. (CNPC), the process to engage some of the financial insti-
Galp (Portugal) and Korea Gas Corp. (KOGAS) tutions to ensure that they have financial close,
– are working together to develop Area 4, starting the investment decision, in the relatively short-
with the Coral gas field, and have built a floating term,” said Tonela, who served as Mozambique’s
LNG (FLNG) unit to liquefy their production at energy minister until his appointment as finance
the rate of 3.4mn tonnes per year (tpy). All of the minister last month.
LNG turned out by the vessel, which will be the He also reiterated that rising gas prices pre-
first of its kind in Mozambique, will be sold to sented Mozambique with “an opportunity to
BP (UK) under a 20-year off-take agreement that fast-track the development of our resources and
can be extended for 10 more years. also to ensure that we can provide to the world an
Separatist attacks carried out by Ahlu Sunna alternative source of supply of energy products,”
Wa-Jamo (ASWJ), an Islamist separatist group, Bloomberg noted.™
in Mozambique’s northernmost Cabo Delgado

Week 17 29•April•2022 www. NEWSBASE .com P7