Bahrain (Washington Insider Magazine)—The US Export-Import Bank (Ex-Im) plans to finance a $4.2 billion oil and gas expansion project in Bahrain, supporting the drilling of over 450 new wells. This decision comes despite President Biden’s pledge to end public funding for overseas fossil fuel projects, made during the COP26 summit.
Bahrain’s project, led by state-owned Tatweep Petroleum, aims to significantly increase the country’s gas reserves and boost oil output. It includes drilling 34 gas wells and over 420 oil wells, along with building processing facilities and transport networks. Emissions from the project are projected to nearly double Bahrain’s current levels by 2026.
Critics argue that this move undermines US climate commitments, with activists pointing to the administration’s failure to enforce clear fossil fuel exclusion policies for agencies like Ex-Im. While Ex-Im cites its “non-discrimination” clause for continuing support, environmental groups suggest applying stricter greenhouse gas screening criteria.
Despite opposition, Ex-Im justifies its decision by emphasizing its mission to support American exporters. Houston-based SLB, the world’s largest oilfield services provider, will play a key role in the Bahrain project, securing lucrative contracts in the process.
This financing signals ongoing tensions between the Biden administration’s climate goals and its support for US fossil fuel firms abroad.
