NLNG Project Financing Overview
Trains 1 & 2 (Base Project)
The Base Project, comprising Trains 1 and 2, was completed at a cost of USD 3.6 billion, fully financed by NLNG’s shareholders.
Train 3 (Expansion Project)
The Third Train, an expansion project costing USD 1.8 billion, was funded similarly to the Base Project. In addition to new equity contributions from shareholders, revenue and surpluses from Trains 1 and 2 were reinvested. The cost of new LNG tankers was largely covered by third-party financiers.
The loans included:
– Four Export Credit Agency (ECA)-guaranteed international bank loans amounting to USD 620 million.
– An uncovered international bank loan of USD 180 million.
– A Nigerian commercial bank loan of USD 160 million.
– An African Development Bank facility of USD 100 million.
These loans were guaranteed by ECAs including US EXIM, ECGD, SACE, and Gerling NCM, supporting 19 international banks led by BNP Paribas, Citigroup, Credit Lyonnais, MCC, and West LB. All facilities had an eight-year tenure and were fully repaid by December 15, 2010, leaving only a USD 72 million short-term financing arrangement.
NLNG’s strong financial discipline in adhering to the loan terms and conditions throughout the repayment period has increased international lenders’ confidence in the company.
Train 6
The Final Investment Decision (FID) for Train 6 was taken in July 2004, with a project cost of USD 1.75 billion. This phase was primarily funded through internally generated funds. The Train became operational on December 23, 2007, following its startup on December 14, 2007.
Train 7
The financing for Train 7 will be sourced partly from NLNG’s balance sheet and supplemented by third-party corporate loans. Discussions for the financing structure are ongoing.
Milestone Loan Repayment
In December 2017, NLNG achieved full repayment of its Shareholder Loan facility, which spanned over two decades and totaled USD 5.45 billion. All principal and interest repayments were made without default. The consolidated loan financed various phases, including the Base Project, Expansion Project, NLNGPlus, and Train 6.
A ceremony to mark this milestone was held in July 2018, which also provided an opportunity for market engagement on financing for Train 7.