Record U.S. Ex-Im Bank Financing for Papua New Guinea LNG Project

(Reuters, Bloomberg, Financial Times, Pacific Environment, 5 December 2009) The U.S. Ex-Im Bank has approved the largest financing transaction in its 75-year history - $3 billion to support U.S. exports for a liquefied natural gas (LNG) project in Papua New Guinea. Financing for the construction of the pipeline and liquefaction plant - to be supported by 17 banks and 5 other export credit agencies - has not been finalised but is thought to include about $8.3 billion from export-credit agencies of other governments: Italy, China, Australia and Japan. While officials from around their world worked night-and-day to come up with an international agreement to combat climate change in Copenhagen, critics say this project will clear over 1,000 hectares of primary rainforest while pumping over 3 million tons of carbon into the atmosphere every year. The 3 billion subsidy doubles the amount Export-Import spent on oil, gas, and natural gas last year and is 99 times more than the $30.4 million the bank spent on renewable energy last year.