LNG at forefront of Dutch foreign fossil fuel funding

The Netherlands is assessing several applications for international fossil fuel projects that could be granted state funding until the end of 2023, most of which target the LNG supply chain.

Dutch export credit agency Atradius — in charge of the country’s public financing for foreign fossil fuel projects — received 10 such applications before the end of last year that amount to €3.9bn in state funding if granted, according to a government document.

The government in 2021 committed to ending all public financing for international unabated fossil fuel projects by 2022 but granted a one-year exemption to applications that were submitted before the deadline.

Six of the 10 applications submitted before the end of 2022 concern transactions related to projects in the upstream sector, including the processing system for a new LNG project, a new offshore LNG project and the construction of a floating production platform for new fossil-fuel infrastructure, the government said today. Other applications concern the supply and delivery of vessels for existing and new fossil-fuel infrastructure.

In addition, Atradius already granted coverage commitments for €8.4mn, with three projects related to the sale of LNG and two to the development of a new gas pipeline and the adaption of existing storage tanks.

The government said that for “business sensitivity” reasons, it did not disclose the names of the applicants or the country where the projects would be located.

The government’s commitment in 2021 to ending public financing for international unabated fossil fuel projects built on a pledge made at the UN Cop 26 climate summit in Glasgow, which had already made room for exceptions “in limited and clearly defined circumstances that are consistent with a 1.5-degree warming limit and the goals of the Paris agreement”. This included projects that “safeguard security of supply in Europe”, such as LNG terminals and infrastructure developed for existing LNG sources, the Dutch government said last year.