Italy's Intesa Sanpaolo adds to list of banks shunning Papua LNG project
PARIS, Feb 13 - Italy's largest banking group, Intesa Sanpaolo (ISP.MI), opens new tab, and the Asian Development Bank (ADB) said they will not finance a $10 billion LNG project in Papua New Guinea, as environmental groups lobby against the project being developed by France's TotalEnergies (TTEF.PA), opens new tab, Australia's Santos (STO.AX), opens new tab and U.S.-based Exxon Mobil (XOM.N), opens new tab.
Energy majors are refocusing spending on more profitable oil and gas businesses and in many cases pulling back from renewable investments, but they are increasingly having to turn to Chinese and other Asian lenders and use more of their own money as green financing rules and pressure from climate advocacy groups spur Western financiers to shun fossil fuels.
In a letter dated January 15 published on Intesa's website and not previously reported, the bank said, "Intesa Sanpaolo does not intend to participate in the financing of the Papua LNG project."
Intesa did not respond to a request for further comment.
The letter was a reply to a group of environmental campaigners which wrote to financiers in December urging them not to participate in the project.
Intesa and Manila-based ADB have funded similar projects in the past, notably Exxon's first Papuan LNG project which started up a decade ago, but since then ADB has stopped financing upstream ventures.
"ADB will not support any natural gas exploration or drilling activities and will be selective in its support for midstream and downstream natural gas," Keiju Mitsuhashi, the bank's energy director, told Reuters on Wednesday.
So far 13 banks and credit export agencies, some of which financed an earlier LNG project in Papua New Guinea, have stated they will not lend for the new project, including Societe Generale, BNP Paribas, UniCredit, Commonwealth Bank of Australia and National Australia Bank.
TotalEnergies, which holds a leading 37.55% operational stake in Papua LNG, did not respond to a request for comment.
A final investment decision (FID) on the 5.4 million metric tons per year project which would double gas production in the impoverished South Pacific nation, has been repeatedly delayed. French bank Credit Agricole pulled out as financial adviser last year and has been replaced by Japan's Mitsubishi UFJ Financial Group.
In October, Papua's state-owned Kumul Petroleum, which has the option to purchase a project stake of up to 20.5%, told local press, opens new tab that costs had risen from an expected $10 billion to between $13 billion and $18 billion, with a FID expected in late 2025 or early 2026.
TotalEnergies CEO Patrick Pouyanne last week said partners were "working hard to get it back on track at acceptable capex."
Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Out
an hour ago
- Time Out
Burp Kitchen & Bar at Bishan Park to close in late July 2025 due to challenging F&B scene in Singapore
If you're a regular at Bishan Park, you should be familiar with Burp Kitchen & Bar – a glasshouse-style café serving hearty Western dishes and daily brunches. Unfortunately, those relaxed meals spent surrounded by nature in this homely space will soon come to an end, as it's soon to close for good in a month's time. In a lengthy six-slide Instagram post dated June 17, 2025, the café announces its impending July 27 closure, while taking the opportunity to thank both its new and loyal customers and reminisce on the fulfilling journey over the past decade. The post states, 'Despite our best efforts, blood, sweat and tears, the current F&B scene has proven too challenging for us to continue pushing on. As much as we love seeing you walk through our doors, this has been a bittersweet and tough decision and we're devastated to say goodbye.' In line with everything else that has been happening in Singapore's food industry, one can probably guess that high rental fees and an increase of general operating costs are the main reasons for Burp's departure. Other well-loved F&B establishments that have recently shuttered, or announced upcoming closures, include beloved pastry café Flor Patisserie; Maxi Coffee Bar at Ann Siang; Wala Wala at Holland Village; and private members' club 1880. Burp goes on to thank all its past and present staff for their hard work and dedication. 'Restaurant work isn't easy. It takes commitment, thick skin and [a] good sense of humour. Your efforts have never gone unnoticed, you've shown grace, warmth and dedication. There are no words that clearly express the love and gratitude we feel for our staff [who] worked hard to keep the vision alive'. It is not clear as to whether Burp Kitchen & Bar has any plans to relocate, or whether another eatery will be taking over the space. Once Burp leaves the premises after July 27, 2025, Bishan Park will be left with Grub Pasta Kitchen and McDonald's as its remaining F&B outlets. Pet-friendly dining venue Palm Garden, and Japanese restaurant ToriYard, have also since closed their outlets at Bishan Park.
Daily Mirror
an hour ago
- Daily Mirror
Iran told shutting down oil 'choke point' would be 'economic suicide'
The US has warned Iran that closing the Strait of Hormuz in response to American strikes on its nuclear sites would be 'economic suicide' as the UK is warned it could be hit hard Iran has been warned that shutting down a crucial Middle East oil "choke point" following US strikes on its nuclear facilities would be tantamount to "economic suicide", as reported by The Telegraph. US Secretary of State Marco Rubio has called on Iran's allies, including China, to exert pressure on Tehran to keep the Strait of Hormuz open, stating that any closure would be a "terrible mistake". "I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil," Mr Rubio said during an interview with Fox News. "If they do that, it will be another terrible mistake. It's economic suicide for them if they do it. And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours," he continued. In retaliation for US strikes, Iranian lawmakers have voted to obstruct vital shipping routes through this key waterway after Donald Trump decided to engage in the conflict between Israel and Iran, reports the Express. However, the vote by the Iranian parliament is not definitive, and state television has emphasised that the ultimate decision lies with Iran's top security officials, Reuters reports. The narrow strait, situated within Iranian territorial waters, is considered the most critical oil transit choke point globally, with approximately one-fifth of all worldwide oil supplies and a third of liquefied natural gas passing through it. Any efforts to disrupt maritime traffic by deploying mines or missiles could trigger a global oil crisis, skyrocket inflation rates and potentially plunge the economy into a downturn. On Sunday, specialists cautioned that such a move to shut the strait might also elicit "a significant military response" from both the United States and its allies. Eurasia Group, a leading consultancy in political risk, advised clients: "The US has amassed a massive military presence in the Gulf and surrounding region, and a move by Iran against the strait would almost certainly trigger a significant military response." Ami Daniel, CEO of maritime data company Windward, noted that even the mere "perception" of an Iranian assault on shipping could reduce maritime traffic to a mere trickle. He further remarked: "People are talking about whether they block the Strait of Hormuz, but how about if they just make it very dangerous to go through?". "Commercial shipping is not the Navy. They don't have to go. So actually, even just increasing the risk to go there will gradually make a big difference versus blocking it completely." As anxieties mount regarding a fresh oil emergency, countless drivers could be hit with soaring fuel costs at the filling stations. The UK, which relies on imports for roughly half its oil supply, stands to be particularly exposed. Following President Trump's ultimatum giving Iran two weeks to start talks, crude oil settled around $77 a barrel last Friday, as market players speculated that any immediate conflict was likely to be averted. Amidst escalating tension, market analysts are bracing for a surge in prices come Monday, as the "risk barometer" skyrockets. There's chatter that we could be looking at $100 a barrel or even higher on the horizon.
Leader Live
3 hours ago
- Leader Live
Brexit rules spark ‘clear demand' for more motorhome parking, lobby group says
Boosting provision for these vehicles would generate more revenue for local businesses and increase the number of visitors to tourist destinations outside the peak summer season, the Campaign for Real Aires (Campra) said. Aires is a French word used to describe designated stopping places for motorcaravans – the collective term for motorhomes and campervans – which are much more common in continental Europe than the UK. Post-Brexit rules mean UK passport holders are prohibited from being in the Schengen area – which covers most of the European Union and some other European nations – for more than 90 days within a 180-day period. That means many UK-based motorcaravan users are seeking domestic destinations for overnight trips. But a survey of 6,731 users suggested 88% are dissatisfied with the UK's availability of overnight parking in desirable locations. The poll also indicated that motorcaravaners spend an average of £51 per day in local businesses and £23 per night on overnight parking or campsite fees. Many respondents commented on the UK's lack of infrastructure and welcoming attitude compared with continental Europe, Campra said. Last month, Hampshire County Council approved plans to ban campervans and motorhomes from staying overnight at the south coast beauty spot of Keyhaven, near Lymington. It claimed the move would 'bring order' to the area. Campra managing director Steve Haywood said welcoming motorcaravans to an area 'can be a hugely positive move'. He went on: 'There is a clear demand – emphasised by post-Brexit travel restrictions – for more overnight stay options in UK towns and cities, and those towns and cities could benefit hugely by embracing motorcaravans. 'More councils are seeing the benefits of providing facilities, instead of suffering the cost of enforcement and bans, not to mention the loss of potential revenue to businesses. 'In Fleetwood, Lancashire, for example, the introduction of overnight parking in the seafront car park for £5 per night has seen a huge boost in revenue for local shops, and has been so successful that additional facilities are now being planned for motorcaravanners. 'Every council that has operated a 12-month trial aire has been successful and made the overnight parking permanent.' Driver and Vehicle Licensing Agency figures show more than 416,000 motorcaravans are registered in the UK. A spokesperson for the Local Government Association said: 'Policies around overnight motorcaravan parking and the provision of facilities are a matter for local councils.'
