Browsing: Liquefied Natural Gas (LNG)

Natural gas breaths new life to Africa’s economy

Industry and Trade

Africa's economy thrives mainly from agriculture, trade and human resource. For years these three have dominated Africa's market, but in recent years researchers have found that Africa's abundant natural resource also includes Natural gas. This discovery later revolutionized Africa's economy as a select few countries have significantly profited from its exportation and use.

Here is an outlook demonstrating how Africa's natural gas production is an energy solution that can propel its entire economy to new heights.

Understanding Natural gas and its uses

Before further elaborating on how Africa's natural gas resources are the envy of other continents, we must first understand the context behind this energy solution and why it is so important.

What is Natural Gas

Natural gas is a mixture of gas which is potent in hydrocarbon. These gases(methane, nitrogen, carbon dioxide, etc.) are naturally found in the air. However, they are mainly far less potent to process.

…
Exim Bank US provides $4.7bn to Mozambique LNG

Exim Bank US provides $4.7b to Mozambique LNG

Investing

Export-Import (EXIM) bank United States said it is in the process of providing  $4.7 billion in financing the liquefied natural gas (LNG) project in Mozambique.

Exim Bank United States fund is the largest commitment given by any lender towards the priciest hydrocarbon development in Africa.

The 13 Million Tonnes Per Annum LNG project will cost $20 billion to develop but Total which is in charge of the project is borrowing $14 billion from 28 financiers.

EXIM bank is one of eight Export Credit Agencies financing the project include Japan Bank for International Corporation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Servizi Assicurativi del Commercio Estero of Italy (SACE), Export Credit Insurance Corporation of South Africa (ECIC), Atradius Dutch State Business (Atradius) and Export-Import Bank of Thailand (EXIM Thailand).

There are 19 commercial banks financing the project in which Standard Bank of South Africa, is leading with …

Has Mozambique stricken gold in the Liquefied Natural Gas (LNG) market?

East Africa

Mozambique has officially positioned itself as a key player in the global Liquefied Natural Gas (LNG) market.

LNG is set to be a game-changer for the country’s 31 million people, even as Mozambique LNG advances one of Africa’s largest projects. This happens with commitment to transform the development of the project into benefits that extend to the lives and economy of Mozambique and its people.

According to Wood Mac, from the early 2030s state revenue from Mozambique LNG alone will reach US$3 billion per annum, single-handedly doubling today’s revenue as calculated by the IMF and World Bank.

With a second Final Investment Decision (FID) in just 2 years, the latest FID on the US$20 billion Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas.

According to Mozambique’s president Filipe Nyusi, this is one of the most important and transformational projects in the country’s history…