Electrogas Malta closes LNG power project financing

Image courtesy of Electrogas Malta

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

Share this article

Follow LNG World News

Events>

<< Feb 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 1 2 3

2nd CWC Japan LNG & Gas Summit

The highly successful CWC Japan LNG & Gas Summit returns for a second year from 19-20 February 2019 in Tokyo, Japan…

read more >

LNG2019

LNG2019 is presented by the IGU, GTI and IIR, supported by the Shanghai Government and hosted by China LNG Association, China Gas Society, The Chinese Association of Refrigeration and China Gas Association.

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

Meet with the Gas, LNG & Power Industry in Brazil & the Americas

read more >