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Japan to invest $14bn in Mozambique’s LNG production

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Japan announces an investment of $14 billion in the production of Liquefied Natural Gas (LNG) in Mozambique. Funding will come from several Japanese banks, public and private.

The Japanese state, in partnership with the private sector, will invest some $ 14.4 billion (1,500 billion yen) in Mozambique, for development in liquefied natural gas (LNG).

According to information reported by the economic information media Nikkei Asian Review, these funds will be used to finance the exploitation of a natural gas field in the country of southern Africa, with the objective of the annual production of about 12 million tonnes of LNG, from 2024.

This significant financing enlists a constellation of lenders including the Japan Bank for International Cooperation(a public company which contributes up to $ 3 billion in loans), the African Development Bank and four major Japanese private sector banks (MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking and Sumitomo Mitsui Trust Bank).

For the Land of the Rising Sun, the world’s largest importer of this hydrocarbon, it is above all a question of securing its energy supplies. An even more pressing need, with the disruptions caused by the Coronavirus pandemic on the distribution circuits, in particular in the energy sector.

Either way, those Japanese billions will make Mozambique one of the largest recipients of foreign investment on the continent. The southern African country is increasingly establishing itself as a major LNG player in Africa and in the world.

The French giants Total and the American Exxon Mobil are already very involved. The first is notably developing a project worth $ 20 billion to produce 13 million tonnes of fuel per year; and the second, the Rovuma project, which ultimately aims to produce around 15 million tonnes of LNG.

Source Agence Ecofin
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