Electrogas Malta, the operator of the country’s first and only LNG regasification facility, has completed the financing of the Delimara 4 LNG-to-power project.
This was revealed by law firm Winston & Strawn in a statement on Monday thas advised Electrogas Malta and its owners Socar Trading, Siemens Project Ventures, and GEM Holdings, in relation to the development and financing of the LNG project in Malta.
According to Winston, the project is the first integrated LNG-to-power project in the world, where investors and financiers took the risk of sourcing LNG on a non-recourse basis.
The project is part of Malta’s strategy to switch from heavy fuel oil power generation to gas-fired power generation.
To remind, Malta received its first-ever cargo in January 2017 via the floating storage and regasification unit (FSU) Armada Mediterrana.
Built under a $300 million contract Bumi Armada won from ElectroGas in 2015, the FSU is a conversion of MOL’s 125,000-cbm MOSS LNG carrier Wakabu Maru. The FSU delivers LNG to the onshore regasification plant feeding natural gas to the CCGT Delimara 4 power plant.
Enemalta previously awarded a series of long-term deals to Electrogas to develop the power plant, LNG regas facilities, the FSU and to supply electrical energy and gas to Enemalta.
To implement the project, Electrogas entered into a long-term LNG sale and purchase agreement with Socar Trading to source the chilled fuel for the term of the project.
Electrogas raised finance from commercial banks and entered into construction contracts with Siemens Austria and J&P Avax, long-term FSU charter and operation and maintenance agreements with Bumi Armada, and operation and maintenance deals with ESB International and Reganosa.
The project financing was closed in late December 2017, according to Winston.
It comprises equity plus a senior debt package in the region of €400 to €500 million ($490.6m to $613.3m) from ten financial institutions.
The institutions include KfW-IPEX, Societe Generale, HSBC, Bank of Valletta, Natixis, BNP Paribas, DZ Bank, Crédit Industriel et Commercial, Rivage Investment and Arguin Infrastructure Partners.
LNG World News Staff