The US Export-Import Bank (Ex-Im) is evaluating funding for Eni SpA’s liquefied natural gas (LNG) project off the coast of Mozambique.
This follows its previous investment in an onshore LNG facility that faced delays due to security concerns and opposition from environmental groups.
Eni’s Coral North floating LNG plant is listed as a pending project by Ex-Im. The bank stated in an emailed response that the financing amount would be disclosed upon final board approval, though no timeline for the decision has been provided.
As the US intensifies its engagement in Africa to compete with China for critical minerals essential to the clean energy transition, Ex-Im has come under greater scrutiny.
A May audit by the inspector general criticized the bank for lacking a clear growth strategy for the region, a claim Ex-Im denied.
Ex-Im’s prior investment in Mozambique’s LNG sector has encountered challenges. In 2020, the bank provided a $4.7 billion loan to TotalEnergies SE for the Mozambique LNG project along the country’s northern coast.
Despite warnings of security risks, the project was delayed after insurgent attacks halted construction. However, conditions have since improved, and TotalEnergies may resume work by the end of this year, according to CEO Patrick Pouyanne. To date, Ex-Im has not disbursed funds for the project.
While floating LNG projects like Coral North are located offshore and away from security threats, they still face opposition from environmental groups campaigning against fossil fuel developments across Africa. Friends of the Earth, for example, challenged the UK Export Finance’s approval of a $2 billion loan for Mozambique LNG, though a UK Court of Appeal found no breach of climate rules.
Eni’s Coral South LNG project, which began exporting fuel from a floating liquefaction plant in 2022, operates in Mozambique’s Area 4 concession. Partners in the project include Exxon Mobil Corp., China National Petroleum Corp., Abu Dhabi National Oil Co., Korea Gas Corp., and Mozambique’s state producer, Empresa Nacional de Hidrocarbonetos. The Coral North project will use a similar offshore vessel for its operations.
