Eximbank of Korea to finance gas field development project in Mozambique

(Club of Mozambique, Maputo, 30 June 2017) The Export-Import Bank of Korea announced on June 27 that it has signed a project financing contract on June 26 for offshore gas field development in Mozambique. The gas field development project is a joint project of the Korea Gas Corporation, Exxon Mobil, Italian energy company Eni and Empresa Nacional de Hidrocarbonetos (ENH) of Mozambique. The signing ceremony was held in Rome, Italy. In the project, the eight institutions including the Export-Import Bank of Korea, the Korea Trade Insurance Corporation and the Export-Import Bank of China are scheduled to provide a total of US$5 billion as creditors. According to the contract, the Export-Import Bank of Korea is responsible for one-fifth of the amount. NGOs have noted that the proposal to construct the onshore liquefied natural gas plant could result in the relocation of thousands, the destruction of fragile coral reefs, and greenhouse gas emissions equivalent to an estimated 5.2m metric tonnes of carbon dioxide each year.