APLNG clears Train 1 project finance tests

ConocoPhilips-operated Australia Pacific LNG project satisfied all of the tests set forth in its project financing completion agreements relating to the first of two processing trains at its LNG facility on Curtis Island.

In May 2012, Australia Pacific LNG executed a US$8.5 billion project finance facility with US EXIM, China EXIM and a consortium of Australian and international banks, providing funding for the LNG facility component of the project.

APLNG CEO, Page Maxson said that $5.1 billion, or 60 percent, of the completion guarantees provided by Australia Pacific LNG shareholders ConocoPhillips (37.5%), Origin (37.5%) and Sinopec (25%) is released.

Project finance lenders’ tests relating to Train 2 are on track to be met in the calendar year 2017, at which time the remainder of the shareholder completion guarantees will be released.

As of early October, Australia Pacific LNG is operating both trains and has now shipped 53 LNG cargoes to customers, predominantly under long-term sale and purchase agreements with Sinopec and Kansai.

LNG production from Australia Pacific LNG’s first train began in December 2015 while the second liquefaction train began production earlier this month.

At full capacity, the A$25 billion (US$17 billion) LNG project will be producing 9 mtpa of the chilled fuel.

LNG World News Staff