The Export-Import Bank of the United States (Ex-Im Bank) is considering financing the Coral North liquefied natural gas (LNG) project, led by Eni SpA, off the coast of Mozambique. The project, which consists of a floating natural gas liquefaction (FLNG) plant, is listed as pending by the official US export credit agency, awaiting final approval from the Ex-Im Bank board, according to a statement from the institution.
According to Bloomberg, Ex-Im Bank has not disclosed the specific amount of the proposed financing, stating only that the amount will be announced after the board’s deliberation.
This possible capital injection comes years after the US bank invested approximately 290 billion meticals (4.7 billion dollars) in a TotalEnergies LNG project, also on the Mozambican coast, which was delayed due to safety problems and opposition from environmental groups.
Eni’s Coral North plant follows the Coral South plant, a project worth around 432 billion meticals (7 billion dollars), which began exporting LNG in 2022.
Both projects are located in the Area 4 concession, which has companies such as Exxon Mobil Corp, China National Petroleum Corp, Abu Dhabi National Oil Co, Korea Gas Corp and Empresa Nacional de Hidrocarbonetos EP as partners. Coral North will be developed using an offshore vessel similar to the one used in the Coral South project.
‘This possible capital injection comes years after the US bank invested approximately 290 billion meticals (4.7 billion dollars) in a TotalEnergies LNG project, also off the Mozambican coast, which was delayed due to safety problems and opposition from environmental groups.’
This possible support from the Ex-Im Bank comes in the context of intensified US efforts to strengthen its presence in Africa and compete with China for the exploitation of resources essential for the global energy transition.
However, the bank faces scrutiny for its lack of a clear strategy for growth in the region, as pointed out by an inspector general’s audit in May.
While floating LNG projects such as Coral North are located kilometres from the coast, out of the immediate reach of security threats, financiers may face opposition from environmental groups.
Organisations such as Friends of the Earth have contested other LNG projects in Africa, including Mozambique LNG, which has been the subject of a legal dispute in the UK over climate issues, although the British government has been absolved of any violation of environmental rules.
The Ex-Im Bank argues that financing projects like Coral North is in line with its mission to support US jobs through financial tools that benefit US exporters. However, the final decision on financing Coral North has not yet been made, and the timeline for this deliberation remains uncertain.
