Page 10 - AsianOil Week 29 2020

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Total reveals details of Mozambique

LNG financing deal

MOZAMBIQUE FRANCE’S Total has divulged some details of expressed satisfaction with the financing agree-
a recently signed financing agreement that will ment. “The signing of this large-scale project
cover around three quarters of the projected financing, less than one year after Total assumed
costs of the Mozambique LNG project. the role of operator of Mozambique LNG, rep-
In a statement, Total said that members of resents a significant achievement and a major
the Mozambique LNG consortium had signed milestone for the project,” Sbraire was quoted
a senior debt financing deal worth $14.9bn. This as saying in the statement. “It demonstrates the
is equivalent to almost 75% of post-final invest- confidence placed by the financial institutions in
ment decision (FID) costs, which have been esti- the long-term future of LNG in Mozambique.
mated at $20bn. This key milestone has been reached thanks to
The French company noted that the signato- the dedication of the Mozambique authorities
ries included eight export credit agencies (ECAs) and the financial partners of the project.”
and 19 commercial banks, as well as the African Equity in the Mozambique LNG consortium
Development Bank (AfDB), a multi-lateral is split between Total E&P Mozambique Area 1,
institution. The ECAs are Atradius DSB of the with 26.5%; two Japanese companies, Mitsui and
Netherlands, South Africa’s Export Credit Insur- Japan Oil, Gas and Metals National Corp. (JOG-
ance Corp. (ECIC), the Export-Import Bank of MEC), with 20%; Bharat Petroleum (India), with
Thailand (EXIM Thailand), the Japan Bank for 15%; Beas Rovuma Energy Mozambique (a 60:40
International Co-operation (JBIC), Japan’s Nip- joint venture between ONGC Videsh Ltd (OVL)
pon Export and Investment Insurance (NEXI), and Oil India Ltd, or OIL), with 10%; Mozam-
Italy’s Servizi Assicurativi del Commercio Estero bique’s national oil company (NOC) ENH, with
(SACE), UK Export Finance (UKEF) and the US 10%; and PTTEP (Thailand), with 8.5%.
Export-Import Bank (US Eximbank), it said. The partners are building an onshore gas
Total did not name all of the commercial liquefaction plant on the Afungi Peninsula. The
banks involved in the deal. According to previ- onshore facility will process natural gas from
ous reports, the participants include Japan’s top Area 1, an offshore block in the Rovuma Basin. It
three private-sector commercial banks, Mitsub- will eventually have two production trains, each
ishi UFJ Financial Group (MUFG), Sumitomo with a capacity of 6.44mn tpy. The first train is
Mitsui Financial and Mizuho Financial. due to come on stream in 2024.™
Jean-Pierre Sbraire, the CFO of Total,

NEWS IN BRIEF

POLICY N2bn daily. Gas unavailability tops the list of stood at 4,179mwh while peak power was
problems bedeviling the power sector coupled 5,316mwh, which was achieved in February.
Nigeria suffers because of with failing transmission and distribution average energy sent out was 4,441MWh/h
Also, on May 7, 2020, for instance, the
infrastructure.
power sector’s inefficiency Corporation (NNPC) had recently intervened (up by 11MW from the previous day) while
Although the Nigerian National Petroleum
2,993MW was not generated due to the
With an average daily loss of NGN2bn to with the approval of over N200bn to the unavailability of gas.
inadequate power infrastructure in the power sector as a way of sorting out the In the same month, 1,021.10MW was
country, the Nigerian economy will be challenges, the beneficiaries said it was for not generated due to high frequency
deprived of about NGN720bn in 2020, payments for debts owed in 2019. resulting from unavailability of distribution
an analysis of figures from the Advisory The national oil company had earlier this infrastructure, while 4.0MW was recorded as
Power Team (APT) of the Office of the Vice month also announced an increase of 19.14 losses due to water management.
President has shown. per cent in the average daily natural gas supply The power sector lost an estimated
Information from the office indicated to power plants. N1.92bn daily in May for that month due to
that the losses were induced by problems he NNPC said the increase translates to constraints from insufficient gas supply, weak
associated with gas supply and grid 788mn standard cubic feet of gas per day distribution and transmission infrastructure.
infrastructure challenges in the Nigerian (mmscfd), equivalent to power generation of While Nigeria sources most of its
Electricity Supply Industry (NESI). 2,873MW, although there has been no marked electricity from thermal, gas-fired power
A trend analysis in the industry, which improvement in power supply. plants, accounting for 70 per cent, generation
ran from between January and projected to In May, about 3,958mwh/h was lost to gas from hydropower plants makes up about 30
end in December showed a loss of at least shortage problems, the average energy supply per cent of the total.

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