Successfully completed USD 741 million financial close for the Bahrain LNG Import Terminal project. Samsung C&T plans to expand its business by building on experience in on/offshore LNG terminals.
On December 5, 2016, Samsung C&T Corporation and its consortium partners completed financing for the USD 1 billion Bahrain LNG Import Terminal project commissioned by the Bahrain National Oil & Gas Authority(NOGA).
As Bahrain’s first project to be developed on a Private-Public Partnership (PPP) basis, the Bahrain LNG Import Terminal will supply LNG to the industrial area of Hidd near Manama, the country’s capital city, for industrial use and power generation.
The contract for the project was awarded to a consortium participated by Samsung C&T, Canadian shipping company Teekay, and Kuwait-based investment company Gulf Investment Corporation (GIC) in 2015, with backing from the Korea Trade Insurance Corporation (K-Sure), which continuously expressed its intention to support the project.
Despite difficulties in financing due to a cut in the Bahrain’s credit rating amid falling oil prices, Samsung C&T successfully secured a USD 741 million loan for the project, including a guarantee of around USD 600 million from K-Sure.
The Bahrain LNG import terminal will consist of an offshore Floating Storage Unit (FSU) for storing LNG and an onshore import facility consisting of a regasification platform, a receiving jetty, and gas pipelines. Construction for the terminal began on November 15, 2016, and once completed, it will be operated for 20 years under its BOOT (Build-Own-Operate-Transfer) contract.
Meanwhile, Samsung C&T, which has already successfully completed the Manzanillo LNG Terminal project in 2012, plans to expand its business by building on its experience and know-how in on/offshore LNG terminals to provide competitive services.