Nogaholding, the investment and business development arm of Bahrain’s National Oil and Gas Authority (NOGA), has announced the financial close of its LNG terminal project.
The project will be the first LNG receiving and regasification terminal to be developed on a public-private partnership (PPP) basis in the Middle East.
A total of $741 million has been secured over 20 years from a syndicate of nine international and regional banks, a statement said.
The LNG terminal will comprise a floating storage unit, an offshore LNG receiving jetty and breakwater, a regasification platform, a subsea gas pipeline from the platform to shore, an onshore gas pipeline and gas receiving facility, and an onshore nitrogen production facility.
The project will supplement local gas production to meet peak seasonal gas demand, industrial growth and procure LNG on a competitive basis. It is due for completion in early 2019 and will have a capacity of 800 million standard cubic feet per day.
It will be owned and operated under a 20-year agreement by Bahrain LNG.
Jointly owned by Nogaholding (30 percent) and a consortium of Teekay LNG Partners (30 percent), Gulf Investment Corporation (24.5 percent) and Samsung C&T (16.5 percent), the LNG terminal is a key component of the further expansion of the energy sector in Bahrain, the statement added.
Sheikh Mohamed bin Khalifa bin Ahmed Al Khalifa, Bahrain's Minister of Oil, said: “The security and reliability of our gas supply is very important to us. The importance of NOGA providing reliable and economic supplies of gas gave us a strong incentive to develop the LNG import terminal as a means of accessing the booming and increasingly competitive international LNG markets.”
Dr Dafer Al Jalahma, CEO of Nogaholding, added: “Against the backdrop of current economic market conditions, we are pleased to have successfully sourced finance for the project of this size and complexity.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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