ELNG sounds out banks for train 2

17 September 2004
Egyptian Liquefied Natural Gas (ELNG)is sounding out the banks that participated in the syndication of the commercial debt for its first liquefied natural gas (LNG) train about taking part in the debt package for train 2 at Idku, already under construction by the US' Bechtel.

A total of more than 30 banks joined the train 1 financing, 18 at the mandated lead arranger (MLA) level and about 13 during syndication of the $826 million, 15-year facility. ELNG is understood to be looking at a similar-sized debt package for train 2. Societe Generaleis the financial adviser on both trains.

The European Investment Bank (EIB) is scheduled to decide at its fourth-quarter board meeting whether to provide $300 million in funding towards the project, as it did to the tune of $372 million on train 1. The meeting will also decide on funding towards the LNG project under way at Damietta by Spanish Egyptian Natural Gas Company(Segas - MEED 30:7:04).

The UK's BGis supplier to both trains and offtaker for train 2, while Gaz de Franceis the offtaker for train 1. ELNG is also soliciting interest from international energy companies for supply and offtake agreements on a third train at the Idku site, which could accommodate six trains (MEED 28:5:04).

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