PLANT
Base Project
The Base Project (Trains 1 & 2), which cost about $3.6 billion, was financed by NLNG's shareholders.
Expansion Project
NLNG’s third train (Expansion Project), including the new LNG tankers, cost $1.8billion. The financing of the Third Train Expansion was carried out in a similar manner as the Base Project. Besides the new equity injection by the shareholders, revenue and surpluses from the Base Project were re-invested in the Expansion. Most of the cost of the new LNG tankers were borne by third party financiers.
NLNGPlus Project
The NLNGPlus project (Trains 4 & 5) cost was estimated at US$2.1 billion (excluding ship acquisition). Five international and six Nigerian banks led the funding of international and Nigerian facilities. The international banks are BNP Paribas, Citigroup, Credit Lyonnais, MCC and West LB. The Nigerian banks are Citibank Nigeria, First Bank of Nigeria, FSB International Bank, Guaranty Trust Bank, Union Bank of Nigeria and United Bank for Africa.
The international facilities comprise four international commercial bank loans supported by Export Credit Agency (ECA) guarantees totalling US$620 million with an eight-year maturity (the ECA Facilities). These were accompanied by an uncovered international bank loan of US$180 million with a six-year maturity. The ECAs involved in this financing are US EXIM, ECGD, SACE and Gerling NCM (formerly NCM). The African Development Bank’s support was $100million.
SHIPPING
Base Trains
In 1990, the company raised a third party loan of $132 million through Citibank to buy four ships for the Base Projects. The ships, which were built for another company but were not put to use, were refurbished and put into interim business until the plant began operations.
Train 3
Following the Third Train Expansion, three vessels were acquired by BGT. Their construction was partly funded with third party financing, viz:
• LNG Rivers & LNG Sokoto were financed with $160 million syndicated loan which was signed on December 20, 1999. Credit-Suisse First Boston was the lead arranger for this facility for which repayment started in 2002 following the delivery of the second vessel.
• The third external debt in connection with BGT fleet was the loan inherited from the acquisition of two ex-Lachmar ships (LNG Edo and LNG Abuja) from NLNG on August 1, 2001 when the outstanding debt stood at US$ 210 million. The loan is serviced monthly, in accordance with the agreed repayment profile.
• In September 2001, another syndicated bank loan for US$ 100 million was arranged to assist with the construction of LNG Bayelsa. Again, Credit-Suisse First Boston played the lead role. The vessel was delivered in February 2003 and the debt is being serviced.
Trains 4 and 5
Eight additional ships needed for the NLNGPlus project have been delivered. Hyundai Industries and Daewoo Shipyard built the ships. Of the eight vessels, BGT owns four while others are chartered from Bergesen dy ASA of Norway.
BGT raised US$ 460 million, in March 2003, to partly fund the construction of the vessels.
This facility was arranged by ABN AMRO Bank, Credit Lyonnais, Fortis, ING Bank, HVB, Verein und Westbank and West LB. The balance of $282 million came from internally generated revenue and shareholders' funds.
BGT financed its existing third party indebtedness in 2006. A new fully amortising US $680 million facility was created at a margin of 75bps. This is secured against the 13 vessels in the fleet. The facility agent is Standard Chartered Bank.
Train 6
Following the signing of NLNG Train 6 Final Investment Decision (FID), design and construction works have commenced for the delivery of more vessels .
The vessels are being built at Daewoo Shipyard and Samsung Shipyard in South Korea. They will be chartered from Bergesen dy ASA of Norway and NYK Shipping of Japan.
