U.S. Export-Import Bank Approves Loan For Mozambique LNG Project

The board of directors of the Export-Import Bank of the United States (EXIM) yesterday voted unanimously to authorize a direct loan of up to $5 billion to support the export of U.S. goods and services from multiple states for the development and construction of an integrated liquefied natural gas project located on the Afungi Peninsula in northern Mozambique.

The borrower is Mozambique LNG1 Financing Company Ltd., which is owned by a group of sponsors, formerly including Anadarko Petroleum Company that earlier this year was acquired by Occidental Petroleum Corporation. Occidental is expected to sell the African assets acquired to Total S.A. The U.S. content requirement of the contract supported by EXIM will continue to apply, and the related EXIM-supported goods and services to the project will be provided by the United States.

“Because of President Trump’s leadership, EXIM was fully restored in May, and our board was able to vote today—following a robust evaluation process to ensure taxpayer protection—to make this deal possible for American workers,” said EXIM President and Chairman Kimberly A. Reed. “Private financing was not available for this project given its size, complexity, and risk—necessitating support from EXIM. We have been told that China and Russia were slated to finance this deal before our EXIM board quorum was restored by the U.S. Senate. The project now will be completed without their involvement and instead with “Made in the USA” products and services. This is a win for our nation.”

Mozambique LNG will initially consist of two LNG trains with total nameplate capacity of 12.88 million tonnes per annum (MTPA). The project has secured in aggregate 11.1 MTPA of long-term LNG sales with buyers in Asia and in Europe.Other partners in the Mozambique LNG project are Mitsui, Mozambique national oil company ENH, Thailand’s PTT and Indian energy companies ONGC, Bharat Petroleum Resources and Oil India.