PTTEP Inks the $15Bn Project Finance for “Mozambique Area 1” to Develop Two-Train LNG

PTT Exploration and Production Public Company Limited (PTTEP) has announced that PTTEP Mozambique Area 1 Limited, a wholly-owned subsidiary of PTTEP, with 8.5 percent of participating interest in Mozambique Area 1 Project and its partners has signed senior debt financing agreements, in the amount of US$14.9 billion, to advance the first two-train LNG development, after the final investment decision was taken in June 2019.

 

The Mozambique Area 1 Project will be the first onshore LNG facility in Mozambique, initially consisting of two LNG trains with total nameplate capacity of 13.1 million tons per annum (MTPA) which produces from the Golfinho-Atum fields located within Offshore Area 1 in the Republic of Mozambique. The project has successfully secured the long-term LNG sales of 11.1 MTPA with key LNG buyers in both Asia and Europe, representing more than 80% of the plant’s capacity. The cost for the total project, which includes both onshore and offshore components, is approximately US$20 billion. Project costs will be majority funded by a combination of equity and the senior debt facilities as mentioned above.

 

The signing of the project financing has demonstrated the project’s capability to access the global funding sources, with support from export credit agencies, a multilateral development institution and commercial banks.