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Australia Pacific LNG get 8.5 billion dollar financing for projects

Oilfield Technology,

Australia Pacific LNG Pty Limited (Australia Pacific LNG) has signed agreements with a syndicate of domestic and international commercial banks and export credit agencies for an US$ 8.5 billion project finance facility. Australia Pacifc LNG is a joint venture between Origin, ConocoPhillips and Sinopec

The project finance facility provides funding for the downstream parts of the project, including the liquefaction facilities on Curtis Island near Gladstone in Queensland, and will underpin the development of Australia Pacific LNG's CSG to LNG project. The facility is subject to a final investment decision (FID) being taken on the second phase of the Australia Pacific LNG project.

Origin Managing Director, Mr Grant King said, "Today's announcement is another major milestone for Australia Pacific LNG, and paves the way for development of one of Australia's largest LNG export projects.

"Substantial progress continues to be made by Australia Pacific LNG across all areas of the CSG to LNG project and we remain on track to take a final investment decision on the second phase of the project by mid-2012.” He added.

Project finance

The US$8.5 billion project finance facility was signed by Australia Pacific LNG, the Export-Import Bank of the United States (US EXIM), The Export-Import Bank of China (China EXIM) and a syndicate of domestic and international commercial banks.

The commercial banks and US EXIM have signed the definitive project finance documentation with Australia Pacific LNG for 16 and 17 year terms respectively. China EXIM has signed a commitment letter agreeing to the key terms of the project finance facility, with its signing of the definitive documentation expected to occur shortly. Draw down under the project finance facility, which is subject to customary conditions precedent, including certain government approvals, will be made progressively over the construction phase of the project.

Adapted from press release by Peter Farrell.

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