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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