International consortium packages K40b financing
By SHEILA LASIBORI
INTERNATIONAL banks and export credit agencies (ECA) are set to sign a record financing agreement next month to develop the PNG liquefied natural gas (LNG) project.
American-based Trade Finance magazine reported that a deal is set to close by mid March towards a US$14 billion (K40 billion) financing scheme for the development of the LNG project being spearheaded by ExxonMobil and a consortium.
It reported that the expected total project cost was US$18.3 billion (K50 billion) and once developed, would double the gross domestic product of PNG.
The Export-Import Bank of the
This was moments after ECAs committed US$14 billion (K38 billion) towards the project costs.
Workers at over 55
Eximbank, the official ECA of the
Also in December, the Australian government announced US$500 million (K1.4 billion) loan to support PNG LNG project development.
Project operator Esso Highlands Ltd, a subsidiary of ExxonMobil, holds 33.2% stake in the project while the other participants include, Oil Search Ltd (29.0%) Independent Public Business Corp (PNG Government, 16.6%), Santos Ltd (13.5%), Nippon Oil Exploration (4.7%), Mineral Resources Development Co (PNG landowners, 2.8%) and Petromin PNG Holdings Ltd’s subsidiary Eda Oil (0.2%).
Miles Shaw, Esso’s manager for public and government affairs, said finalisation of financing and completion of the last LNG sales and purchase agreement (SPA) with an Asian-Pacific buyer was expected to be completed in the first quarter of this year.
The outstanding SPA is with China Petroleum Co (CPC) of
The previous three SPAs signed were with
These agreements are long-term and effective for a 20-year period.
The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity of 6.6 million tonnes of LNG per year.
Meanwhile, work on the project at various sites in
“We will advise when all sites have returned to normal operations,” Mr Shaw said.