Australia Pacific LNG has confirmed all conditions precedent have been satisfied for its US$8.5 billion project finance facility, which will support the development of the Australia Pacific LNG coal seam gas (CSG) to liquefied natural gas (LNG) project in Queensland.
The project finance facility will specifically provide funding for the downstream parts of the project, including the liquefaction facilities on Curtis Island near Gladstone in Queensland.
The first drawdown of the finance facility by Australia Pacific LNG has already occurred and funding will be progressively drawn down throughout the construction period, up to the US$8.5 billion facility limit.
The US$8.5 billion project finance facility is the largest ever signed in Australia and represents a key component of the financing of the Australia Pacific LNG project. The syndicated facility was signed in May 2012 by the Export-Import Bank of the United States (US EXIM), The Export-Import Bank of China (China EXIM) and a number of Australian and international commercial banks for 16 and 17 year terms.
Australia Pacific LNG is developing a A$23 billion CSG to LNG project in Queensland which includes the further development of CSG reserves in the Surat and Bowen Basins, a gas transmission pipeline and a two-train LNG facility on Curtis Island, near Gladstone. The shareholders in Australia Pacific LNG are Origin (37.5 per cent), ConocoPhillips (37.5 per cent) and Sinopec (25 per cent).