Costs and Financial Risks of Certain Liquefied Natural Gas Import Projects to U.S. Taxpayers and Gas Consumers.
Abstract
Both the Export-Import Bank and the Maritime Administration provided financial assistance for LNG projects. However, their involvement was not directly related to the U.S. importation of Algerian natural gas. The Export-Import Bank provided loans and loan guarantees to Sonatrach, the Algerian national oil and gas company, to facilitate Sonatrach's use of U.S. contractors and equipment in the construction of LNG facilities and thereby promote American exports. The Maritime Administration, in line with its mandate to encourage the growth and maintenance of the U.S. merchant marine and shipbuilding industry, provided the U.S. shipbuilders and shipowners with construction subsidies and loan guarantees to ensure the construction of ships in the United States. U.S. owners of LNG facilities and ships are not entitled to any special energy tax credits. They qualify, however, for the standard investment tax credit available to anyone who invests in certain depreciable property. Based on discussions with officials from each of the companies involved, we estimate about $161 million of investment credit has been or will be claimed, subject to audit by the Internal Revenue Service.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 19, 1981
- Accession Number
- ADA108535
Entities
Organizations
- United States Government Accountability Office