EXIM seeks vote on $5bn loan to develop LNG project in Mozambique

The US Export-Import Bank (EXIM) has announced that its board of directors intend to vote on a $5bn direct loan for the development of an onshore liquefied natural gas (LNG) project on the Afungi Peninsula in northern Mozambique.

The lender said that it has notified the US Congress of the transaction, which will be ready for a final board vote in 35 days.

Upon receiving the approval, the transaction is expected to support US exports of goods and services for the engineering, procurement and construction (EPC) of the LNG plant and its associated infrastructure.

The financing would support nearly 16,400 jobs in the US during the five-year construction period.

EXIM also stated that thousands of jobs could be additionally generated across the country, through follow-on sales of the project.

After securing final approval, the financing would support US exports to the Area 1 concession of the Mozambique LNG project, covering an area of approximately 10,000km². The license is expected to supply 64tcf of gas.

EXIM commerce secretary Wilbur Ross said: “With the backing of the Trump Administration, US investment in Africa has taken on a new urgency.

“This critical project is not only a win for American companies and workers, supporting over 10,000 jobs in the United States, but also for the people of Mozambique as well.”

According to EXIM, the Mozambique LNG project would start to develop the Rovuma Basin.

In June, Saipem JV secured an EPC contract from Anadarko Petroleum for the onshore Mozambique Area 1 Liquefied Natural Gas (LNG) Development (Mozambique Area 1 LNG project).