Thursday, May 10

Origin close to $3bn LNG deal with US bank

ORIGIN Energy is in advanced negotiations for a $US2.95 billion ($2.93bn) loan from the US government's Export-Import Bank that could provide cheap funding for a $US6bn expansion of the Australia Pacific LNG plant at Gladstone and substantially reduce the need to raise equity.
The company is also on the verge of closing deals with China Ex-Im Bank and commercial lenders for project financing.

If the $US3bn offer is accepted, it will be the second-biggest project financing the US Ex-Im Bank has done in its 78-year history.

On Tuesday night, the bank said it had authorised the loan on undisclosed terms for the expansion of APLNG, which is a joint venture between Origin, US oil major ConocoPhillips and Chinese energy giant Sinopec.

The bank said China Ex-Im Bank and commercial lenders were providing debt financing.

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The Australian

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