Export-Import Bank of China has inked US $8.5 billion ($A8.62 billion) financing deal with Australia Pacific LNG.
This financing deal is for an LNG project in Queensland. This US $20 billion ($A20.28 billion) coal seam gas to LNG project is a joint venture of Origin Energy, US energy giant ConocoPhillips and China's Sinopec.
The finance deal also covers the Export-Import Bank of US and a syndicate of Australian and international commercial banks. The transaction is an optimistic as there have been concerns regarding falling gas prices and risks related with implementation of a suite of Australian LNG projects, cost blowouts, delays and skills shortages. The exports at Queensland project are expected to start in late 2014.
The project financing facility will fund the downstream parts of the project, including the liquefaction facilities on Curtis Island near Gladstone. The deal is subject to a final investment decision (FID) to be taken on whether to continue with a second processing train, where the gas is liquefied.