Mozambique looks for LNG ECA financing despite market scepticism

(Macauhub, Macau, 11 January 2019) The government of Mozambique has been involved in the last few weeks in intense negotiations with seven countries to secure funding for one of its largest natural gas projects and overcome scepticism about whether it will honour its debt commitments. The Rovuma Area 1, in the Rovuma Basin, involves an estimated investment of US$25 billion. The talks involve seven Export Credit Agencies (ECAs), including Japan (JBIC), China (China ExIm), South Korea, USA (US-Exim), Germany [sic] (Atradius) and Italy (Servizi Assicurativi del Commercio Estero – SACE). The ECAs are evaluating the possibility of funding the Rovuma Area 1 project, which is operated by Anadarko which has been the subject of multiple environmental cases. In discussing the risks of the LNG project, the government has ignored the threat posed by armed insurgent attacks in Cabo Delgado. Most international analysts believe that they will not threaten the projects; but the state’s inability to control the attacks affects the country’s image as a safe investment destination and a place for expatriates.