Natural gas in Mozambique: a c$8bn* “deal of the year”
PFI AWARD - Deal of the Year 2017 - Natixis arranged the CORAL South FLNG transaction in Mozambique, the largest infrastructure transaction closed worldwide in 2017. It is the largest project and ECA** financing ever raised in Africa.
The transaction was awarded the PFI award (Thomson Reuters) as "Middle East & Africa Oil & Gas Deal of the Year 2017". It marks a considerable achievement in the Energy sector globally, Floating LNG being a pioneering LNG production process.
The project, sponsored by ENI, ExxonMobil, CNPC, KOGAS, Galp and ENH, has been subject to a particular thorough due diligence with regards to environmental and social aspects. It consists in the construction and operation of a floating natural gas liquefaction facility ('FLNG') to be deployed 90km offshore Mozambique for operations of the Coral Gas field for a total cost of c.US$8bn*.
The FLNG will be constructed by an EPCIC*** consortium made up of TechnipFMC, JGC Corporation and Samsung Heavy Industries. It will produce 3.4 million tons per annum of Liquefied Natural Gas (LNG).
Natixis acted as SACE** Agent and Mandated Lead Arranger of the US$4.7bn financing, which is split into ECA covered and direct loans (BPIFrance, SACE, K-Sure, K-Exim), Chinese-led loans covered by Sinosure and uncovered commercial loans. Remaining costs are funded by equity and pre-completion revenues.
This landmark transaction further illustrates Natixis' commitment to better serve its clients thanks to its strong expertise in infrastructure, export and natural resources finance and to its strong syndication capacity. The transaction involved various business lines within its platforms in Europe, Middle East and Asia.
*Exact amount undisclosed
**ECA: Export Credit Agency (e.g.: SACE, K-Sure, K-Exim...)
*** EPCIC: Engineering, Procurement, Construction, Installation & Commissioning (contract)