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    Oxford Energy Podcast – LNG Finance – will lenders accommodate the changing environment?

Summary

Since the 1980s the growth of the LNG business has been underpinned by third party finance, predominantly from international banks, under limited recourse project finance.

by: OXFORD INSTITUTE FOR ENERGY STUDIES (OIES)

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Oxford Energy Podcast – LNG Finance – will lenders accommodate the changing environment?

Financings were also often backed by political risk cover from Export Credit Agencies. Under these arrangements the project itself borrowed money to fund its development enabling financially weaker shareholders to participate in the project. Key to the funding was the existence of reliable revenues from the project secured though long-term offtake contracts with creditworthy buyers. In this podcast David Ledesma discusses with Robin Baker how the LNG business is changing, changing buyer contractual requirements and asks the question – are lenders willing to loan funds based on more flexible terms?

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