Trafigura has revealed today the new credit facility it will use in order to buy LNG cargoes from US exporters.

Trafigura Group, one of the market leaders in the global commodities industry, with Oil and Petroleum Products, Metals and Minerals, Gas and Power, and Renewable Energy divisions, has entered into two revolving credit facilities, for a total combined amount of $400m, with insurance from the Export-Import Bank of the United States (US EXIM).

The group said the facilities will exclusively be used to purchase LNG cargoes from US exporters for supply to customers primarily in Europe, providing energy security through replacement of Russian gas due to the war in Ukraine.

The signing of the agreements follows approval by the US EXIM board of directors of two Financial Institution Buyer Credit policies issued to two financial institutions, including Citibank, for short-term facilities being extended to Trafigura.

Christophe Salmon, Trafigura’s Group chief financial officer said: “We’re delighted to have successfully closed the first LNG-based facilities backed by US EXIM’s FIBC insurance policy, which supports American jobs by facilitating US exports.”

Citibank, N.A. acted as sole arranger with Citibank, N.A., London Branch as ECA Agent and Lender for one of the facilities.