First LNG receiving and regasification PPP project in the Middle East
The project will be the first LNG receiving and regasification terminal in the Middle East developed on a public-private partnership (PPP) basis and is Bahrain’s first LNG project. With an initial capacity of 400 million standard cubic feet per day (expandable to double this capacity), it will be completed in early 2019.
Norton Rose Fulbright advised on the onshore and offshore aspects of the project in particular the development, construction and shipping aspects (including the long term charter of the LNG FSU) as well as on the financing, which involved a syndicate of nine international and regional banks participating in the US$ 741 million loan.
The project will comprise a floating storage unit, an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea and onshore gas pipeline connecting the regasification platform to an onshore gas receiving facility, and an onshore nitrogen production facility.
Bahrain LNG W.L.L., the developer and owner, is jointly owned by nogaholding (30%) and a consortium consisting of Teekay LNG Partners L.P. (30%), Gulf Investment Corporation (24%) and Samsung C&T (16%). The project was awarded to the consortium in December 2015.
The transaction was led by Norton Rose Fulbright partners Nick Prowse (London), Joanne Emerson Taqi (Bahrain) and Charles Whitney (London) with support from Claire Wilby, Andrey Spasov, Nikki van der Meer, Scott McCabe, Richard Howley, Chris Down, David Johnston, Christina Jeong, James Pritchard and Will Scott.
Nick Prowse, partner, Norton Rose Fulbright, commented:
“Against a backdrop of a challenging financing market, we are delighted to see such a significant transaction reach financial close. As a major strategic project for the Kingdom of Bahrain and the first LNG venture for the country, the Bahrain LNG project will assist in securing LNG supply and provide energy security for the future of the country.”
Charles Whitney, partner, Norton Rose Fulbright, commented:
“Bahrain LNG is another example of a well-structured project in Bahrain that was successful in attracting high quality project finance banks, this time led by K-SURE. The project has been identified by the Government of Bahrain as a key component in its plans for the further expansion of the energy and related sectors, and we are pleased to have assisted the Kingdom of Bahrain in achieving its strategic goals.”
