
The financing will support the engineering, procurement and construction of the Afungi Peninsula-based project. (Image source: Adobe Stock)
An integrated liquefied natural gas (LNG) project in northern Mozambique has finally received a long overdue funding from the newly constituted board of directors of the Export-Import Bank of the United States (EXIM), which approved a direct loan of up to US$4.7bn that will cover export costs of US goods and services for the facility's development and construction
“I am pleased that in authorising this amendment the Bank finally fulfills the commitment EXIM made nearly six years ago to this Mozambique LNG project,” said the Bank's acting president and chairman Jim Cruse.
In a larger scale, the financing will support the engineering, procurement, and construction of the Afungi Peninsula-based project that comprises an onshore LNG plant, related facilities, and offshore activities.
The Rovuma LNG Phase 1 project, which also belongs offshore Afungi Peninsula, is another prospective zone with natural gas liquefaction and export potential. Houston-based energy engineering company, McDermott International, has been handling the front-end engineering design (FEED) operations of the project.
“LNG helps shape an entirely new era of energy solutions and McDermott plays a significant role in this global shift with more than 60 years of LNG experience,” said Rob Shaul, senior vice-president of McDermott's Low Carbon Solutions business. “McDermott is well established in Mozambique and can apply this knowledge and experience to continue the country's industrial, social and economic development.”
The Mozambique LNG project remains a vital investment for the US as it aims to diversify its international portfolio.
Mozambique's LNG evolution has also warranted the rise of LNG technology companies in the region, such as Air Products. The company's dual mixed refrigerant LNG Process technology (AP-DMR) and equipment has been deployed at the Coral South floating liquefied natural gas (FLNG) plant, ensuring LNG production above 3.4 mn tons per year.