The international and regional banking community is eagerly awaiting the PIM as the first train financing will be the landmark deal of 2004. It is expected that the mandated lead arranging (MLA) group will be assembled along the usual Qatar Petroleum lines: a large group will be mandated with an eye to reducing syndication risk.

In tandem, a PIM will be issued for an Islamically-structured facility that is expected to raise $200 million-400 million.

Negotiations with two export credit agencies (ECAs) are proceeding. It is expected that $500 million-1,000 million worth of cover will be provided by the US' Export-Import Bank and Italy's SACE. The ECAs are primarily covering two long-lead item contracts. The US' Air Products will deploy its patented AP-X technology and Italy-based GE Oil & Gaswill supply turbo compressor trains (MEED 19:3:04). The current schedule sees the export credits mainly completed before the commercial PIM is dispatched.

A capital markets option is also being developed for the first train financing. Its size will be determined by the sizes of the other tranches, and it is unlikely to be launched until just before the signing of the other financing facilities.

Financing for QGII's second train is set to be launched two years after financial close on the first train, which is scheduled for October. Royal Bank of Scotland is the financial adviser.

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