JBIC signs loan agreement for development of Mozambique LNG Project

7 March 2021
JBIC signs loan agreement for development of Mozambique LNG Project

The Japan Bank for International Cooperation (JBIC) has signed a loan agreement amounting to up to US $536m with MITSUI & CO., LTD for development of Mozambique LNG Project. The loan is co-financed with private financial institutions, bringing the total co-financing amount to US$ 894m equivalent.

For this project, MITSUI and Japan Oil, Gas and Metals National Corporation (JOGMEC), jointly with Total S.A. of France, Empresa Nacional de Hidrocarbonetos E.P. of Mozambique, and others, will develop the Golfinho/Atum gas field in the northernmost part of Mozambique; transport feed gas through a subsea gas pipeline to the onshore liquefaction plant to be constructed; and produce and sell liquefied natural gas (LNG) with an annual production capacity of 13.12 million tons. In July 2020, JBIC signed a loan agreement in project financing with MOZ LNG1 FINANCING COMPANY LTD, the project company for this project.

Loan for Mozambique LNG Project

The loan is intended to finance the development of the gas field and production of LNG in the project through MITSUI. Japanese utility companies are expected to offtake approximately 30% of the LNG produced by this project. JBIC’s support for this project is therefore expected to contribute to securing stable supplies of LNG, which is an important energy resource for Japan. JBIC will continue to actively support the development of energy resources by Japanese companies and financially assist in the securing of a steady energy supply for Japan.

About Japan Bank for International Cooperation

JBIC is a policy-based financial institution of Japan, and conducts lending, investment and guarantee operations while complementing the private sector financial institutions.