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NLNG secures $360m loan from S’Korea

By on March 25, 2013

The Nigerian Liquefied Natural Gas (NLNG) has secured the nod of South Korean Export-Import Bank, for a $360 million (N56.8 billion) facility, with a maturity of nine and half years.

A statement from the Korean Export-Import Bank stated that the transaction comes under the state-owned South Korean bank’s programme of providing export credit and guarantee to support Korean exporters.

Specifically, the loan was scripted to part-fund purchase of six vessels worth $1.3 billion by NLNG.

“Nigeria LNG, gas exporter of the state-owned Nigerian National Petroleum Corporation (NNPC), signed a contract with two South Korean shipyards – Samsung Heavy Industries Co. and Hyundai Heavy Industries Co. – for six LNG vessels worth $1.3 billion.”

According to the bank, NLNG appointed Guaranty Trust Bank Plc and France’s BNP Paribas in February, to raise $1.6 billion for the six LNG carrier ships. A banking source said the fund raising scheme is expected to close by the end of this month.

South Korea’s EXIM bank also said Korea’s state-run trade insurance firm– K-Sure and Korea Finance Corp will provide an additional $360 million loan for the two beneficiaries of the NLNG contract.

In an official statement, the EXIM bank stated the loans would help Korean exporters win more deals in Africa.

NLNG stated in its 2013 facts and figures that it currently manages 16 long term LNG Sales Purchase Agreements (SPAs) executed with 11 buyers on a Delivered Ex-Ship (DES) basis.

It added that these buyers include Enel, Repsol Gas Natural LNG (Stream), Botas, GDF Suez, GALP GN, BG LNG, Endesa, ENI, Iberdrola, Shell Western LNG BV and Total Gas and Power Limited.

“The long term LNG buyers take delivery of their volumes in receiving facilities spread across the Atlantic Basin in countries such as Spain, France, Portugal and Italy in Europe, Turkey, Mexico and the United States of America.

“In recent times, NLNG cargoes have been delivering to the Far East, Middle East, South America, and the United Kingdom through its existing customers, and via its spot Master FOB agreements with several companies. Volumes have gone as far as Japan, South Korea, Taiwan, China, India, Kuwait, Brazil and Wales. This has positioned the company as a global player in the gas industry”, the statement added.

 

( The Citizen )