Exec: IDB Could Decide Camisea II Loan Amount in September

The Inter-American Development Bank (IDB) could decide in September the amount of the loan it may provide to finance the second stage of the Camisea project, Camisea II, local press quoted consortium Peru LNG president Carlos del Solar as saying.

Although original plans called for Peru LNG to export liquefied natural gas (LNG) from the US$3.3bn project to Mexico and/or the US from 2009-2010, newspaper Gestion quoted the executive as saying LNG could be sent to Brazil first if that country pays more.

Mexico is the "logical" place to send the gas but there could be other markets, said Del Solar, who pointed to the current problems between Bolivia and Brazil.

US oil company Hunt Oil holds a 50% interest in the consortium, Spanish oil firm Repsol YPF (NYSE: REP) 20% and South Korea's SK Corporation 30%. Repsol YPF is responsible for marketing 100% of the LNG produced by the project.

The consortium also is evaluating ways that local investors such as pension funds and banks could finance the project, according to Del Solar.

"We are negotiating with other multilateral entities," he said.

The IDB loan could reach US$400mn and the aim is to secure financing once the project's environmental audit has been completed.

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