Mozambique’s state-owned National Hydrocarbon Company (ENH) has assured the partners in Mozambique’s Liquefied Natural Gas (LNG) project a $20 billion gas project led by Total, that it will pay the state oil company’s equity share of $2.25 billion government guarantee if required.
According to Carlos Zacarias, President of Mozambique’s regulator, the National Petroleum Institute, state financing had been secured and the partners have accepted $2.25 billion government guarantee in lieu of an immediate equity contribution from ENH. Zacarias said the guarantee was valid for five years.
Each partner in the project is required to make a minimum capital contribution. ENH has a 15% interest in the project that is expected to start production in 2024, while Total owns 26.5% after acquiring its stake from Anadarko for $3.9 billion in 2019.
Total has also secured $15 billion in funding for the project and the funding agreement is expected to be sealed on 30 June 2020.