Magnolia LNG, a unit of Australia’s LNG limited, has appointed BNP PARIBAS bank as its Project Finance Advisor for the Magnolia LNG Project in Lake Charles, Louisiana, United States.
Magnolia has signed an Equity Commitment Agreement with New York based Stonepeak Partners in relation to provision of the US$660 million Stage 1 development equity financing requirement from financial close.
Magnolia will now work closely with Stonepeak, EAS Advisors and BNP PARIBAS to secure the proposed US$1,540 million project debt financing for the Stage 1 development.
Under the engagement terms BNP PARIBAS’s roles include:
The company’s Chief Financial Officer Norm Marshall said, “ The engagement of BNP PARIBAS is the culmination of a comprehensive evaluation process and they bring to the MLNG Project an impressive project financing history and substantial capabilities and resources. BNP PARIBAS and the company have a relationship spanning over 7 years with BNP PARIBAS having been previously appointed as the project finance advisor to the company’s now suspended Fisherman’s Landing LNG Project in Gladstone, Queensland.”
“We are excited at BNP PARIBAS’s interest in being involved in the MLNG Project. Over the term of the relationship with BNP PARIBAS they have developed a very close understanding of the company’s LNG industry business objectives and LNG project development philosophy. BNP PARIBAS, together with Stonepeak and EAS Advisors LLC, provides Magnolia with a project debt and equity financing team comparable to any” , Mr Marshall further said.
[mappress] LNG World News Staff, December 13, 2013; Image: Magnolia