Peru's Camisea LNG project gets US$2.25 billion
Project Finance Magazine
27 June 2008

A consortium of Hunt Oil, Repsol, SK Energy and Marubeni has signed $2.25 billion in loans to finance its $3.8 billion Peru LNG project. The financing includes a loan agreement with the Inter-American Development Bank (IABD) for $800 million split into two tranches, a $400 million A loan provided directly from the IADB, and a second $400 million B loan arranged by a syndicate of banks (Société Générale, BBVA, Calyon, Sumitomo, ING, Mizuho, and Bank of Tokyo Mitsubishi).

The International Finance Corporation (IFC) has signed a $300 million A loan, US Ex-Im has a $459 million guarantee facility approval, under which commercial banks will fund, and Kexim and SACE are also providing loans of roughly $300 million. The sponsors hope to close a bond issue in the Peruvian capital markets in the fourth quarter of 2008 to round out the financing requirement.

The project involves construction and operation of a LNG plant, a marine terminal and a 408km pipeline linking the liquefaction plant to the existing Transportadora de Gas del Perú gas pipeline. Peru LNG will manufacture the LNG from gas extracted from the Camisea gas fields. The plant will have the capacity to produce 4.4 million tonnes per year of LNG, and is expected to be in operation by 2010.