Qatar set to launch $5bn Barzan gas financing

04 July 2011

Deal will be first Qatar project financing since Ras Laffan C in 2008

Qatar Petroleum (QP) is set to send out a detailed information package on the $5bn financing for the Barzan gas project by mid-July, according to sources close to the deal.

A non-disclosure agreement has already been sent to a group of at least 20 banks and they are expecting to receive more details of the deal in the next two weeks.

The move to push ahead with approaching commercial banks follows agreements with a group of export credit agencies (ECAs) to finalise their commitments to the project. Japan Bank for International Corporation and the Export-Import Bank of Korea (Kexim) are due to provide direct loans, with Japan’s Nippon Export and Investment Insurance (Nexi), Italy’s Sace, and Korea Export Insurance Corporation (KEIC) providing loan guarantees to the project. The financing will also feature commercial bank loans and a bond issue (MEED 10:06:11).

The deal is expected to benefit from strong bank interest in Qatar due to its high levels of economic growth.

QP and the US’ ExxonMobil are the sponsors behind the project, while the UK’s Royal Bank of Scotland (RBS) is financial adviser.

The deal will be the first project finance transaction to be undertaken by a Qatari firm since $3bn was raised, also by RBS, for the Ras Laffan C power and water project in 2008 (MEED 1:4:08).

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