Project Financing - LNG Projects. John D. White Baker Botts, London Successfully Managing Project Finance in the GCC Emirates Towers Hotel, Dubai 23 May 2005. Overview . Amount of Financing Required Financing Challenges Financing Objectives Drivers for Successful LNG Project Financing
John D. WhiteBaker Botts, London
Successfully Managing Project Finance in the GCCEmirates Towers Hotel, Dubai23 May 2005
Legal and contractual
Cost and tenor
Appetite for completion/ operating and other risks
Financing sourceFinancing ObjectivesWhether any LNG financing is successful depends on its fit with sponsors’ objectives:
Public equity markets
Public and 144A debt markets
Tax-exempt /industrial revenue
Combinations of the aboveFinancing SourcesCertain markets are better for particular objectives and assuming certain risks.
Sound LNG project financing requires evaluation and allocation of risks and rewards and mitigation, including:
This list is not nearly exhaustive.
Risks compounded by “project-on-project” risk.
Could be more robust than a greenfield project
but those results depend on front-end planning with greenfield project
but even best laid plans can succumb to
Successfully financing LNG projects requires solving weak link theory
John D. WhitePartner
99 Gresham Street
London EC2V 7BA
Telephone +44 20 7726 3423
Fax +44 20 7726 3523