US federal bank provides loan for natural gas project in Mozambique

30 September 2019

The US Export and Import Bank has approved a US$5 billion loan to support the export of domestic goods and services for the various phases of construction and development of the integrated liquefied natural gas project on the Afungi Peninsula, northern Mozambique, the institution said in a statement.

The statement issued in Washington also said that this loan will support an estimated 16,400 jobs over the five-year period of the construction of the two natural gas processing plants and additional supplier facilities in the states of Texas, New York. York, Pennsylvania, Georgia, Tennessee, Florida, and the District of Columbia.

The bank added that granting this loan would represent US$600 million in revenue to the US Treasury, including fees and interest charged to the borrower, the Mozambique LNG1 Financing Company Ltd ..

This company, which is owned by a group of sponsors, previously included the Anadarko Petroleum Corporation group, acquired in August by US group Occidental Petroleum Corporation.

The statement recalls that the assets in Mozambique of the Occidental Petroleum group were sold to French group Total but said that the national participation requirements in the loan agreement remain in force and that the goods and services will be provided by US companies.

The United States Export and Import Bank is an independent federal agency that promotes and supports US jobs by providing competitive and necessary export credit to foreign buyers of US goods and services. (Macauhub)