Page 8 - AfrElecl Week 30

AfrElec GAS-FIRED GENERATION AfrElec

US Eximbank to provide largest portion

of $14.9bn Mozambique LNG loan

MOZAMBIQUE THE US Export-Import Bank (Eximbank) is the onshore and offshore portions of the project.
set to make the largest individual contribu- It noted that its board of directors had authorised
tion to a nearly $15bn credit package that the the release of funds for onshore work, which will
Mozambique LNG consortium is using to fund primarily involve the construction of a gas lique-
its project. faction plant, in September 2019. The board then
The US export credit agency (ECA) said in revised its authorisation in May 2020 to permit
a press release last week that it had signed the the release of funds for offshore work, which will
initial documents authorising a direct loan of mainly involve the development of the offshore
$4.7bn to Mozambique LNG. This is equivalent Area 1 block.
to around 31.54% of the credit package, which Mozambique LNG has already started to
is worth a total of $14.9bn. It is also the largest build an onshore gas liquefaction plant on the
single portion of the package, which is being Afungi Peninsula in northern Mozambique. This
extended by a group that includes seven other onshore facility will process natural gas from
ECAs and 19 commercial banks. Area 1, an offshore block in the Rovuma Basin.
According to the bank, the loan agreement It will eventually have two production trains,
will benefit the US economy. Mozambique LNG each with a capacity of 6.44mn tonnes per year,
intends to use Eximbank’s portion of the credit and the first train is due to come on stream in
package to cover the cost of goods and services 2024. The cost of the project has been estimated
provided by US companies, it stated. at $20bn.
“Once additional documents are finalised Equity in the Mozambique LNG consor-
and conditions are satisfied, EXIM’s financing tium is divided between Total E&P Mozam-
will support a forecasted 16,700 US jobs at 68 bique Area 1, the operator, with 26.5%; two
suppliers located in eight states – Florida, Geor- Japanese companies, Mitsui and Japan Oil, Gas
gia, Louisiana, New York, Oklahoma, Pennsyl- and Metals National Corp. (JOGMEC), with
vania, Tennessee and Texas – and the District 20%; Bharat Petroleum (India), with 15%; Beas
of Columbia,” it added. “Follow-on sales are Rovuma Energy Mozambique (a 60:40 joint
expected to support thousands of additional jobs venture between ONGC Videsh Ltd (OVL) and
across the United States.” Oil India Ltd, or OIL), with 10%; Mozambique’s
Eximbank went on to say Mozambique LNG national oil company (NOC) ENH, with 10%;
would be using US goods and services for both and PTTEP (Thailand), with 8.5%.™

SOL AR

EIB to lend $12.5mn to boost

off-grid solar in Uganda

POLAND THE European Investment Bank is to lend to agree new support for scaling up off-grid
$12.5mn to France’s Engie to fund the installa- solar deployment in East Africa under this new
tion of 240,000 solar home systems in Uganda partnership with ENGIE. Over a million people
Engie subsidiary Fenix International is to across Uganda will be able to access electricity for
provide a range of solar kits that use the pay-as- the first time that will power communications,
you-go (PAYGO) financing model, with the loan provide light and make cooking easier. This
money available in local currency. scheme will also reduce use of kerosene, charcoal
The project aims to scale up off-grid solar and candles to help families save money, reduce
power in a bid to transforming energy access in pollution and reduce the risk of accidents..” said
rural areas across Africa. Ambroise Fayolle, European Investment Bank
In Uganda, 80% of people do not have access Vice President.
to electricity, and providing off-grid solar kits “Our new partnership with the European
can raise access-to-power levels and provide Investment Bank in Uganda will allow Fenix
clean, decentralised energy that does not require to provide ultra-affordable PAYGO systems to
access to the unreliable national grid. millions of people in villages across the coun-
“The European Investment Bank is pleased try. This will provide access to clean solar power

P8 www. NEWSBASE .com Week 30 30•July•2020