U.S. EXIM Bank considering $5 billion loan to Mozambique LNG

The U.S. Export-Import (EXIM) Bank is reportedly seeking a vote on a $5 billion loan to the Mozambique LNG project.

EXIM Bank is the official export credit agency of the United States federal government.

According to Reuters, the bank said that its board intends to vote on a $5 billion direct loan for the development of an LNG project in Mozambique. This will be the bank’s biggest export financing deal in years.

EXIM notified the U.S. Congress of the transaction, which will be ready for a final board vote in 35 days.

If 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 on the Afungi Peninsula in northern Mozambique.

The bank claims that the financing could support 16,400 American jobs among suppliers over the five-year construction period of the project.

The project would be the single biggest financing deal since EXIM’s full lending powers were restored in May. That ended a drought of nearly four years in which the bank could not approve loans and guarantees of more than $10 million due to a Congress spat over its future.

U.S. Commerce Secretary Wilbur Ross said: “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.”

Independent oil and gas producer Anadarko is the operator of the project with a 26.5-percent working interest.

Co-venturers include ENH Rovuma Área (15 percent), Mitsui E&P Mozambique Area1 (20 percent), ONGC Videsh (10 percent), Beas Rovuma Energy Mozambique (10 percent), BPRL Ventures Mozambique (10 percent), and PTTEP Mozambique Area 1 (8.5 percent).

It is worth noting that Anadarko was bought earlier this month by Occidental Petroleum in a deal worth $55 billion.