Bahrain LNG has been awarded the “Middle Eastern ECA Finance Deal of the Year” award at the 2017 TXF Venice Global Borrowers’ Summit held in Italy on 7th June 2017.
This award recognised Bahrain LNG for a well-structured LNG regasification terminal transaction that attracted high quality project finance lending of US$ 741 million for a tenor of 20 years. Despite a sovereign downgrade, the project was over-subscribed and backed by availability payments from NOGA, with only partial ECA cover.
The award was accepted by Mr. Qaisar Zaman, Chairman of Bahrain LNG W.L.L and nogaholding’s General Manager of Investments, during the Reception and Gala Dinner that was held at the CINI Foundation in Venice. The event was held as part of the Summit and attended by more than 1,000 finance industry experts from over 300 companies across the world.
The Bahrain LNG Import Terminal, a key component of the expansion of Bahrain’s energy sector, supplements local gas production to meet peak seasonal gas demand, industrial growth and procure internationally-traded LNG on a competitive basis. The project will be owned and operated under a twenty-year agreement by Bahrain LNG WLL.
The Bahrain LNG Terminal is jointly owned by the Oil and Gas Holding Company (nogaholding 30%) and a consortium consisting of Teekay LNG Partners L.P. (Teekay LNG 30%), Gulf Investment Corporation (GIC 24.5%) and Samsung C&T (Samsung 16.5%), and is due for completion in early 2019 and will have a capacity of 800 million standard cubic feet per day.
The LNG Terminal will comprise a Floating Storage Unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, a subsea gas pipeline from the platform to shore, an onshore gas pipeline and gas receiving facility, and an onshore nitrogen production facility.
The EPC contract was awarded to GS Engineering and Construction, and Teekay LNG will supply the Floating Storage Unit (FSU) which will be modified specifically for this project through a 20- year time-charter agreement. K-SURE is providing commercial and political risk cover for approximately 80% of the financing.
Standard Chartered Bank, Arab Petroleum Investments Corporation (APICORP), and the Korea Development Bank are the lead arrangers. A syndicate of nine international and regional banks which include: APICORP, Standard Chartered Bank DIFC, Korea Development Bank, Ahli United Bank B.S.C., Banco Santander S.A., Crédit Agricole Corporate and Investment Bank, ING Bank, Natixis, and Société Générale are funding the project.Back