Origin Energy has announced that Australia Pacific LNG Pty Limited has signed agreements with a syndicate of domestic and international commercial banks and export credit agencies for an US$8.5 billion project finance facility. Participants in the facility include the Export-Import Bank of the United States (US EXIM), The Export-Import Bank of China (China EXIM) and a syndicate of domestic and international commercial banks.

 

The project finance facility provides funding for the downstream parts of the project, including the liquefaction facilities on Curtis Island near Gladstone in Queensland, and will underpin the development of Australia Pacific LNG's CSG to LNG project. The facility is subject to a final investment decision (FID) being taken on the second phase of the Australia Pacific LNG project.

 

The commercial banks and US EXIM have signed the definitive project finance documentation with Australia Pacific LNG for 16 and 17 year terms respectively. China EXIM has signed a commitment letter agreeing to the key terms of the project finance facility, with its signing of the definitive documentation expected to occur shortly. Draw down under the project finance facility, which is subject to customary conditions precedent, including certain government approvals, will be made progressively over the construction phase of the project.

 

Origin Managing Director, Mr Grant King said the agreements paved the way for development of one of Australia's largest LNG export projects.

 

"Australia Pacific LNG's ability to secure US$8.5 billion in project finance from Australian and international lenders evidences the strength and quality of the project.

 

"Substantial progress continues to be made by Australia Pacific LNG across all areas of the CSG to LNG project and we remain on track to take a final investment decision on the second phase of the project by mid-2012.

 

"Given the timing of Australia Pacific LNG's phase one FID, we believe our project schedules and budgets were based on a solid understanding of current regulatory requirements and the cost environment. We remain confident that the project remains on schedule and budget to deliver first gas in 2015, as expected," Mr King said.