The African Export-Import Bank (Afreximbank), Africa’s foremost multilateral trade finance institution, is supporting the advancement of Mozambique’s energy industry and economy by committing up to US$400 million in guarantees and direct lending to the Area 1 LNG Project. The total Project is estimated to cost about US$24 billion and  is set to be the largest private foreign direct investments in Africa, and one of the largest LNG projects in the world. It will play a key role in Mozambique’s economic growth and support the wider region.

The US$400m financing will be used to partially finance the project development activities required to extract natural gas offshore, its transfer to onshore processing facilities and then its conversion to LNG for export to various markets around the world.

The Mozambique Area 1 LNG project is an integrated LNG development that will initially comprise two LNG liquefaction trains – each capable of processing 6.44 million metric tonnes a year. The initial development is expected to produce more than sixteen trillion cubic feet of gas and ninety-three million barrels of condensate over the 30-year development and production period.

A key focus is for the project to be developed in an environmentally and socially sustainable manner and that it operates responsibly, protecting the environment, as well as the health and safety of the public, employees and contractors. Investment into the region will create jobs, increase the standard of living and is expected to drive long-term sustainable economic growth for the country and the region.