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Export-Import Bank of Korea to Fork Out U$1B for Gas Field Project in Mozambique

Gas Field Project
Mozambique 4 Area Business Area Map

The Export-Import Bank of Korea announced on May 1 that the bank will provide a total of US$1 billion in project financing (PF) for the Coral South FLNG Project in Mozambique.

The Coral South FLNG Project is for KOGAS to construct an FLNG in the Coral South area of ​​Mozambique’s marine gas field (Area 4) jointly with Eni of Italy, CNPC of China, GALP of Portugal and ENH of Mozambique and sell LNG for a long period.

KOGAS will take part in the project as a gas field operator, Samsung Heavy Industries as a major contractor for a large FLNG (about US$2.5 billion) and the Export-Import Bank of Korea (US$1 billion) and the Korea Trade Insurance Corporation (US$800 million) as PF providers.

“The first project for the gas field, which the Export-Import Bank of Korea and the Korea Trade Insurance Corporation have been negotiating about with financial institutions of other countries will be in full swing at a time when prices of oil and gas is showing some signs of a recovery,” said an official at the Export-Import Bank of Korea.

“We will reinforce our leading role in supporting resource development projects with good business potential and helping land offshore plant orders as we have faithfully played a role in helping companies survive even in the face of falling gas prices, ” he added.

The Original Posted by Michael Herh/Business Korea