Project financing of LNG trade
摘要
In project finance the various sponsors replacing one-party financing must realistically divide the risks and benefits among themselves, because entrepreneurial risks are not acceptable to lenders. All of the venture components must be set in place before the sponsors and lenders are committed to implementation of any financing segment. Risk factors include assurance of sufficient gas supplies of suitable quality, completion of all elements on a functioning basis, on time, and within budget, possible interruption of production or transportation, sufficient market demand and price, and political and foreign exchange risks. Government financial support (guarantees, subsidies, tax credits, etc.) is needed. Capital commitments of the order of $10 billion/yr of LNG projects are seen as reasonable in the over-all capital market, with participation by export agency, private, and domestic capital sources. Timing is important because a confluence of demands for capital in a narrow time period could result in financial crowding out of LNG by other essential projects.