Stranded Exports: How export credit agencies continue to finance risky overseas oil and gas projects

While many governments have reduced financial support for oil and gas projects through their export credit agencies (ECAs) in recent years, some continue to provide loans, guarantees and insurance to the sector.

This report explores the risks inherent in such financing as the energy transition progresses.

Recently approved projects and those under consideration by ECAs are analysed using our least-cost methodology, assessing their financial viability under different paces of transition.

ECAs are currently considering a significant number of liquefied natural gas (LNG) projects, despite a likely oversupplied market by the end of the decade and the downward pressure on prices that this would result in.

The report urges governments to incorporate sensitivity analyses of proposed projects to determine their compatibility with different energy scenarios.

It also highlights the opportunity cost of allocating finance to a sector that faces peaking demand rather than supporting clean energy projects or oil and gas decommissioning.