The African Development Bank (ADB) has approved a US$400 million loan for the Rovuma Basin Area 1 natural gas project in northern Mozambique, the institution said in a statement issued on Tuesday.
The statement also said that the loan is intended to support the construction of an integrated natural gas processing unit, including a gas liquefaction unit for the gas to be extracted in the concession area.
The Area 1 block project includes the installation on the land of two natural gas processing units with an initial production capacity of 12.88 million tons per year.
The African Development Bank recalls that the consortium partners last June reached the final investment decision, which will amount to over US$20 billion, “thereby facilitating the sales of one of the most important natural gas discoveries of the last two decades.”
It also noted that long-term natural gas sales contracts have already been signed with some of the most important players in the natural gas market, such as the Bharat group (India), Centrica (United Kingdom), China National Offshore Oil Corporation (China). CPC Corporation (Taiwan), Eléctricité de France (France), JERA (Japan), Pertamina (Indonesia), Royal Dutch Shell and Tohoku Electric and Tokyo Gas, both from Japan.
The block in question is operated by the Total group, with 26.5%, and its partners are ENH Rovuma Area A, a subsidiary of Mozambican state oil group ENH with 15%, Mitsui E&P Mozambique Area1 Ltd. ( (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)