Inpex Corp. took LNG project financing to a new level with its raising of $20 billion for the Ichthys LNG project in Australia, involving eight export credit agencies and 24 commercial banks.
The japanese company said the Ichthys project financing was the biggest project financing ever arranged in the international financial market.
The project finance credit facilities are comprised of direct loans from ECAs, ECA insured or guaranteed commercial loans, commercial loans from 24 commercial banks and senior sponsor loans from the Ichthys LNG project participants.
Direct loans from ECAs include $5Bln in direct loans from Japan Bank for International Cooperation (JBIC) and $2.75Bln of loans insured by Japan's Nippon Export and Investment Insurance.
Inpex said it and the other Ichthys LNG project participants, including French energy company Total, will severally guarantee lenders the repayment of the loans during the construction phase.
Japan Oil, Gas and Metals National Corporation will undertake a part of Inpex's liability with respect to its portion of such guarantee, where Jogmeg's liability is limited to $2Bln.
The Ichthys project is the first case where a Japanese company is leading such a world-scale venture as an operator.
"The participants in the Ichthys LNG project appreciate the continued support from financial institutions, the local communities, the governments of Australia, Western Australia and Northern Territory, as well as support from other stakeholders," Inpex said.
Ichthys LNG will produce around 8.4 million tonnes per annum when the plant near Darwin comes on stream in 2016. The main customers will be Japanese utilities, including Tokyo Gas, Osaka Gas and Chubu Electric.
Inpex is also developing the Abadi Floating LNG project in Indonesian waters and has secured Royal Dutch Shell as a minority partner in the venture.
