The African Export-Import Bank (Afreximbank), based in Egypt, has approved $400m in loans and guarantees to support the construction of $24bn Mozambique LNG project.

The Mozambique LNG project involves the development of Golfinho-Atum gas field located offshore Area 1 Block of the deep-water Rovuma Basinas as well as the construction of a 12.88 million tonnes per annum (Mtpa) onshore LNG facility.

The Mozambique LNG Area 1 project is led by Total. Its consortium partners include Mitsui, Oil India, ONGC Videsh, Bharat Petroleum, PTT Exploration, and Mozambique’s national oil and gas company ENH.

Afreximbank said that the latest financing will be used by the project partners to partially fund the development activities of the project.

Afreximbank president Benedict Oramah said: “We are confident the Mozambique LNG project will create opportunities for the people of the country and drive sustainable economic growth.

“We believe that the success of projects such as this will create a precedent through which other development projects in Africa can secure funding and gain international traction.

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“We are delighted to be one of the key stakeholders involved in this project which will accelerate the rate of growth of intra-African trade.”

Afreximbank noted that the guarantee is done together with Export Credit Insurance Corporation of South Africa SOC (ECIC).

The latest financing commitment is in line with the Egyptian bank’s efforts to promote intra-African trade as well as export development.

Recently, Total and its consortium partners have secured $14.9bn financing from several banks for the Mozambique LNG project.

The Mozambique LNG project involves the construction of LNG facility. (Credit: Arulonline from Pixabay)