Project financing of LNG trade
In project finance the various sponsors replacing one-party financing must realistically divide the risks and benefits among themselves, because entrepreneurial risks are not acceptable to lenders. All of the venture components must be set in place before the sponsors and lenders are committed to implementation of any financing segment. Risk factors include assurance of sufficient gas supplies of suitable quality, completion of all elements on a functioning basis, on time, and within budget, possible interruption of production or transportation, sufficient market demand and price, and political and foreign exchange risks. Government financial support (guarantees, subsidies, tax credits, etc.) is needed. Capital commitments of the order of $10 billion/yr of LNG projects are seen as reasonable in the over-all capital market, with participation by export agency, private, and domestic capital sources. Timing is important because a confluence of demands for capital in a narrow time period could result in financial crowding out of LNG by other essential projects.
- Research Organization:
- Chase Manhattan Bank
- OSTI ID:
- 6727320
- Report Number(s):
- CONF-770879-
- Journal Information:
- Pap., Int. Conf. Liquefied Nat. Gas; (United States), Journal Name: Pap., Int. Conf. Liquefied Nat. Gas; (United States) Vol. III-9; ISSN ICLNB
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
030400 -- Natural Gas-- Products & By-Products
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
BUDGETS
CAPITAL
ENERGY SOURCES
FINANCING
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
INSTITUTIONAL FACTORS
INVESTMENT
LIQUEFIED GASES
LIQUEFIED NATURAL GAS
LNG INDUSTRY
MARKETING
NATURAL GAS
NATURAL GAS INDUSTRY
PRODUCTION
RISK ASSESSMENT
SOCIO-ECONOMIC FACTORS
TRADE