LNG Exports Seen Benefiting From EXIM Financing

(Bloomberg, Washington, 13 April 2022) The U.S. Export-Import Bank approved a plan Thursday that could yield a flood of financing for U.S. energy ventures, including wind and solar projects, battery manufacturing and terminals to sell LNG overseas. The bank’s board voted 3-0 on a formal policy shift encouraged by the Biden administration that would extend support to domestic manufacturing and infrastructure projects that facilitate exports. The agency plans to prioritize financing for green projects, from renewable power ventures to clean energy manufacturing. The initiative would apply to non-energy ventures too, including the manufacture of semiconductors, biotech and biomedical gear. Environmentalists and natural gas advocates say the initiative could also bolster a host of LNG export terminals proposed from the U.S. Gulf Coast to Alaska, especially given the Biden administration’s efforts to supplant Russian energy in Europe with U.S. supplies. Shipments of U.S. natural gas have surged over the past few years. While advocacy groups for the U.S. LNG sector quickly welcomed the plan, saying it could help projects overcome funding challenges and support thousands of jobs, environmentalists expressed concern that new LNG financing could take money away from renewable energy. As the U.S. attempts to bring down the soaring price of energy, financing from a New Deal–era agency could be used to ramp up domestic gas production. It is planning those controversial investments with almost no opportunity for public review. Now, under pressure from LNG interests, Exim may double down on its investment in fracked gas through a domestic financing program President Biden has created to strengthen supply chains.