EXIM Board Unanimously Approves Amended Financing of U.S. Exports to Mozambique LNG Project and Support of More U.S. Jobs in Additional States
May 14, 2020
(Ex-Im Bank)
$4.7 Billion Loan Will Now Support 16,700 American Jobs and Nearly Double Number
of Identified U.S. Suppliers
WASHINGTON – The Board of Directors of the Export-Import Bank of the United
States (EXIM) today unanimously voted to amend the agency’s previously
approved September 2019 direct loan supporting U.S. exports for the
development and construction of an integrated liquefied natural gas (LNG)
project located on the Afungi Peninsula in northern Mozambique.
Today’s board action amends the original scope of EXIM’s financing of the
project from exclusively the onshore portion of the LNG plant and related
facilities to also allocate an estimated $1.8 billion of the estimated total of
$4.7 billion (decreased from the original $5 billion) to support the project’s
offshore production. As a result, the transaction now will support an increased
number—16,700—of estimated American jobs over the five-year construction
period.
The number of U.S. suppliers also has increased to 68, with 31 suppliers added
to the 37 companies previously identified. These suppliers are located in two
more states—Louisiana and Oklahoma—in addition to the previously announced
states of Florida, Georgia, New York, Pennsylvania, Tennessee, and Texas, and
the District of Columbia. Follow-on sales are expected to support thousands of
additional jobs across the United States.
“EXIM’s financing for the Mozambique LNG project continues to strongly
support President Trump’s Prosper Africa Initiative to unlock opportunities
for U.S. businesses in Africa. The amendment approved today expands the scope of
U.S. involvement in the project to support even more American jobs—16,700 U.S.
jobs—across additional states,” said EXIM President and Chairman Kimberly A.
Reed. “As was previously underscored, private financing was not available for
this project given its size, complexity, and risk—necessitating support from
EXIM. We were told that China and Russia were slated to finance this deal before
our EXIM board quorum was restored by the U.S. Senate one year ago. This is a
great example of how a revitalized EXIM, thanks to President Trump’s
leadership and bipartisan support from Congress, can help ensure the use of
‘Made in the U.S.A.’ products and services, without ceding ground to
countries like China and Russia.”
The lead sponsor and operator of the project is Total S.A., a multinational
oil-and-gas company that is one of the world’s largest developers of LNG
projects.
As part of EXIM’s historic 2019 reauthorization, Congress directed EXIM to
establish the “Program on China and Transformational Exports.” The
Program’s purpose is to advance the United States’ comparative leadership in
the world with respect to China and strengthen America’s competitiveness
through EXIM’s support of transformational U.S. exports—and the U.S. jobs
that make them possible—as U.S. companies seek to compete and win in the
global marketplace.
The transaction supports the Trump Administration’s Prosper Africa
Initiative, a whole-of-government economic effort to substantially increase
two-way trade and investment between the United States and Africa. Launched in
December 2018, Prosper Africa brings together the resources of more than 15 U.S.
government agencies, including EXIM, to unlock opportunities to do business in
Africa and advance American and African prosperity and security, support jobs,
and demonstrate the superior value of transparent markets and private enterprise
for driving growth.
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