The Australian government’s Export Finance and Insurance Corporation (EFIC) is now officially loaning $US500 million to the ExxonMobil led LNG project in Papua New Guinea.
As announced by Minister for Trade Simon Crean, EFIC will provide a loan of $US100 million on its Commercial Account with further amount of up to $US400 million on the Australian Government’s National Interest Account.
ASX-listed companies Oil Search (29.0%) and Santos (13.5%) are major investors in the project to develop, own and operate the first phase of an integrated LNG facility in the Southern Highlands of Papua New Guinea. The project will include a gas gathering and conditioning plant, overland and subsea pipeline and an LNG export terminal near Port Moresby.
‘We’re proud to be involved in this exciting project which will see benefits for the communities of Papua New Guinea and Australian business supplying services and support to the project,’ EFIC’s Managing Director and CEO, Angus Armour said.
“Not only does EFIC’s support assist Oil Search and Santos to realise their investment plans in PNG but, importantly, has already seen Australian exporters identified as preferred tenderers and suppliers for contracts worth more than $US1.2 billion for the construction phase of the project with significant further opportunities available. ”
As Australia’s export credit agency, EFIC joins the lead consortium of export credit agencies providing financing for the PNG LNG Project.
“EFIC’s experience in financing large, complex projects and long history supporting resource projects in PNG allowed us to work alongside an international team to ensure Australia’s involvement in this world class project” EFIC Executive Director, Origination and Portfolio Management, Peter Field said.