The board of directors of the Export-Import Bank of the United States (EXIM) voted to notify the U.S. Congress of its consideration of a $5 billion direct loan.
That will support the export of U.S. goods and services from multiple states for the development and construction of an integrated liquefied natural gas (LNG) project located on the Afungi Peninsula in northern Mozambique.
At the conclusion of a 35-day congressional notification period, the transaction may be considered for a final vote by EXIM’s board of directors. Members of the public may also provide comments on the transaction by September 16 (link is external).
If finally approved, the transaction would support U.S. exports of goods and services for the engineering, procurement, and construction of the onshore LNG plant and related facilities. These U.S. exports are facing direct competition from financing offered by foreign export credit agencies.
EXIM’s financing could support an estimated 16,400 American jobs over the five-year construction period, including jobs at suppliers in Texas, Pennsylvania, Georgia, New York, Tennessee, Florida, and the District of Columbia. Through follow-on sales, thousands of additional jobs may be generated across the United States.
Through fees and interest earned, the transaction also could create more than $600 million in revenue for U.S. taxpayers, according to EXIM projections.
The Mozambique LNG project would begin to develop the Rovuma Basin, one of the world’s most extensive untapped reserves of natural gas. The project is anticipated to have a transformative impact on Mozambique’s economy during the expected operational period of the project.
If finally approved, EXIM’s financing would support U.S. exports to the Area 1 concession of the Mozambique LNG project, which covers approximately 10,000 square kilometers and is anticipated to supply up to 64 trillion cubic feet of gas. The borrower would be Mozambique LNG1 Financing Company, which is owned by a group of sponsors, including Anadarko Petroleum Company that was recently acquired by Occidental Petroleum Corporation. ■