BG Secures Financing on 1st Egyptian LNG Train
BG Group partners announce that 12 international banks and three Egyptian banks have been mandated to arrange financing for the US$1.35 billion first train of the Egyptian LNG project.
Egyptian LNG is developing a natural gas liquefaction plant with a 3.6 million tonnes per annum (mtpa) capacity at Idku, approximately 50 kilometres east of Alexandria. Construction of Train 1 is under way and first production is expected in the third quarter of 2005. The entire output of Train 1 has been sold to Gaz de France under a 20-year agreement.
An early works program for a proposed 3.6 mtpa second train has been authorised and any required financing for this train will be undertaken separately. Production is scheduled for around mid-2006.
Total completed project costs for Train 1 amount to US$1.35 billion including financing costs and contingencies. Debt will cover 85 per cent of the financing needs and will comprise:
- A US$150 million Egyptian Loan Facility
- US$1 billion International Credit Facilities consisting of:
-A US$550 million International Loan Facility
-A US$225 million European Investment Bank Article 18 Guarantee Facility
-A US$225 million European Investment Bank Euromed Guarantee Facility.
The mandated lead arrangers have fully underwritten the facilities and are working on the finalization of the facilities agreement. Financial close is targeted for the end of the first quarter, 2003. There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended December 31, 2001.