Bahrain LNG WLL, the developer and owner of the first liquefied natural gas (LNG) receiving and regasification terminal in the Middle East developed on a private-public partnership (PPP) basis, has completed limited recourse financing for the project after securing a USD 741 million loan from a syndicate of nine banks.
Bahrain LNG WLL is jointly owned by the Oil and Gas Holding Company (nogaholding) and a consortium consisting of Teekay LNG Partners, Gulf Investment Corporation (GIC) and Samsung C&T.
The project was awarded to the Teekay LNG-GIC-Samsung consortium in December 2015 by the National Oil & Gas Authority (NOGA) of Bahrain following an international competitive tendering process.
The project will have a capacity of 800 million standard cubic feet per day and will be owned and, once completed in early 2019, operated under a twenty-year agreement. It will comprise a Floating Storage Unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility.
The EPC contract was awarded to GS Engineering & Construction. Teekay LNG will supply the FSU which will be modified specifically for this project, through a twenty-year time-charter agreement.
The USD 741 million loan has a tenor of 20 years. Korea Trade Insurance Corporation (K-SURE) provided commercial and political risk cover for approximately 80% of the financing. Standard Chartered Bank, Arab Petroleum Investments Corporation (APICORP), and the Korea Development Bank acted as pathfinder banks.
The banking syndicate includes 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.