BG Group, along with its partners, today announced that it has signed the financing documentation associated with the US$880 million project financing for Egyptian LNG Train Two. The total amount of debt raised represents the second largest ever project financing in Egypt after that of Egyptian LNG Train One. Financial close along with first drawing is expected in September 2005.
Speaking today, Stuart Fysh, BG Group’s Executive Vice President and Managing Director of the Mediterranean Basin and Africa said: “Securing this financing on such competitive terms illustrates the international financial community’s continued confidence in the world class Egyptian LNG project and, more broadly, Egypt’s growing energy sector. Egyptian LNG project will contribute to Egypt’s position as a leading global LNG exporter by 2006 and the experience in financing both Trains One and Two will assist as we consider further development of the Idku facilities.”
The debt facilities comprise:
A US$180 million Loan Facility from four Egyptian banks,
A US$700 million International Credit Facility consisting approximately of;
A US$411 million International Loan Facility from 22 banks,
A US$144 million European Investment Bank (EIB) Article 18 Loan Guarantee Facility, and
A US$144 million EIB Euromed Loan Guarantee Facility.
The guarantee facilities support two $US144 million 20 years EIB loans provided under the Article 18 and Euromed mandates. The transaction has been successfully oversubscribed with 22 International Mandated Lead Arrangers securing the international tranche and four Egyptian Mandated Lead Arrangers for the local tranche.
Partners in Egyptian LNG Train Two include; BG Group (38%), PETRONAS (38%), the Egyptian Natural Gas Holding Company (12%), the Egyptian General Petroleum Corporation (12%). Egyptian LNG Train Two is due to produce its first LNG cargo before the end of 2005. The BG operated Sapphire field in the West Delta Deep Marine Concession, which is due to produce first gas in the third quarter of 2005, will supply gas to Train Two. The entire 3.6 mtpa output has been sold to BG Gas Marketing.
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 31 December 2004.