The Export-Import Bank of the United States (Ex-Im Bank) said Thursday that it has approved a loan guarantee of up to $403.5 million to support the export of U.S. equipment and services to Qatar Liquefied Gas Co. 3 Ltd. (Qatargas 3) for supply development, transportation infrastructure and construction of a natural gas liquefaction plant and related facilities in Qatar.

ConocoPhillips and state-owned Qatar Petroleum are partners in Qatargas 3, which involves the production of natural gas offshore from Qatar’s North Field and the transport of the gas by subsea pipeline onshore to the Ras Laffan Industrial City in Qatar, where it will be processed into 7.8 million metric tons per year of LNG for export to the United States.

“This transaction will create and sustain a large number of U.S. jobs throughout the country, while furthering Ex-Im Bank’s long and successful relationship with Qatar to develop its energy infrastructure, and helping to meet U.S. energy needs,” said Ex-Im Bank Chairman James H. Lambright. The bank has supported previous Qatar LNG projects including Ras Laffan, and Qatargas II.

The transaction is structured as a limited recourse project financing, a type of private financing where repayment is based on project revenues. BNP Paribas, Paris, is the guaranteed lender. Ex-Im Bank support covers a portion of the project, which overall is expected to cost $5 billion.

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