Export Finance and Insurance Corporation (EFIC) has issued two performance bonds to support the participation of Wagners in the ExxonMobil-led LNG project in Papua New Guinea (PNG).
EFIC is the Australian Government’s export credit agency that offers insurance and financial solutions to Australian export companies to help grow their business overseas.
Wagners or the Wagner group of companies is a Queensland construction materials group based in Toowoomba that has won multi-million dollar contracts to supply, install and operate two concrete plants in addition to supplying concrete and quarry products for the US$18 billion LNG project in the PNG Southern Highlands.
Wagners will be supplying to Japanese engineering and construction firms Chiyoda Corp and JGC Corporation, whose joint venture CJJV is building the LNG plant for Esso Highlands Ltd, a consortium led by ExxonMobil.
EFIC has provided two performance bonds to CJJV on behalf of Wagners.
John Watts, General Manager of Wagners Global Services said that Australian commercial banks would have required full security to issue the performance bonds to a party in a foreign jurisdiction.
EFIC’s bonds freed up their working capital, enabling them to deliver the large-scale contract in a challenging location.
EFIC has additionally provided a US$350 million loan to the broader PNG LNG project, joining an international syndicate of export credit agencies and commercial lenders.
EFIC Executive Director, SME, Andrea Govaert says that their participation in the PNG LNG project financing supports Australian exporters such as Wagners who are pursuing contracts for the construction phase of the project.
Ms Govaert adds that Australian companies have been awarded more than US$1 billion of work at the LNG project with scope for more sub-contracting opportunities.