Natural Gas World: What does the future hold for LNG financing?

Abdullah Alazzaz
17 January 2018: “Historically, oil has been the principal index on which long-term LNG contracts into Asia have been structured, and there’s evidence that even newer shorter contracts – unless for US LNG imports – still have a sizeable component of oil indexation, even if some are using hub gas prices. Finance adviser at LNG consultancy Poten Melanie Lovatt asked panellists if other funds – such as bond investors – could be attracted to participate in LNG project financings at an early stage. She cited how Stonepeak had come to Australian LNG’s Magnolia LNG export project in Louisiana mid-2017 with a $1.5bn commitment even though the project has yet to take final investment decision (FID). Stonepeak’s commitment is a fixed coupon ‘bond-style’ redeemable Preferred Interest in Magnolia LNG, having a 12-year tenor from its financial close.” Read full article here.
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