Gaz-System Raised EBRD Financing For The Development Of The LNG In Świnoujście

abarrelfullabarrelfull wrote on 10 Oct 2012 05:23
Tags: ebrd europe gaz-system lng poland

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On 4 October 2012, GAZ-SYSTEM S.A. signed an agreement with the European Bank for Reconstruction and Development for a PLN 300 million investment loan to be used for the development of the LNG in Świnoujście. Thereby, the company closed the financing for this strategic project.

“The LNG in Świnoujście is crucial for the energy security in Poland and Central Europe as it brings the diversification of the natural gas supply sources and directions in the region. The European Bank for Reconstruction and Development is committed to supporting the improvement of energy security in Eastern Europe and the LNG in Poland is a major step forward in the development of Trans-European Energy Networks” - commented Riccardo Puliti, Managing Director, EBRD, charge of the energy sector, when signing the agreement.

The loan will be made available to GAZ-SYSTEM S.A. from the moment of signing of the agreement until the end of year 2014, and the amortisation period will be 12 years. Interest periods fall every 6 months, the base rate is 6M WIBOR and the margin will remain fixed for the entire term of financing. The full amount of the loan will be transferred to Polskie LNG S.A., the company being in charge of the development of the project, either as a loan or in the form of capital injection.

“The construction of the re-gasification in Świnoujście is one of the key projects being currently developed in Poland. It is another element supporting the diversification of energy sources, which will contribute to the strengthening of the country's energy security. The involvement of such prominent external institutions in the financing of this project only proves its high profile, significance and credibility” – said Mikołaj Budzanowski, the Minister of State Treasury.

“The growth of LNG importance over the recent years is worth noting – in 2010 the global share of LNG in the natural gas supply reached over 32% and is sill on an upward trend. The natural gas liquefaction technology enables the transportation of LNG from any supplier around the world, eliminates geographic barriers and creates a truly global market for gas. The LNG will be a window opening this global market for Poland. Having this in mind, we are particularly glad to have secured 100 percent of the financing already at this stage of the project. The signing of another agreement with EBRD also demonstrates that the funds allocated for this strategic development are being spent by Polskie LNG in accordance with best practice standards and most efficiently” - concluded Rafał Wardziński, Presdent of the Management Board of Polskie LNG S.A.

To finance the project worth PLN 2.7 billion, apart from the loan extended today by the European Bank for Reconstruction and Development, GAZ-SYSTEM S.A. already raised financing from the European Investment Bank in the amount of PLN 600 million. Furthermore, the subsidiary company, Polskie LNG, is a beneficiary of EU co-financing under two other programmes: European Energy Programme for Recovery (EEPR - for PLN 245 million and the Operational Programme Infrastructure and Environment – for PLN 456 million). The contribution of GAZ-SYSTEM S.A.'s own funds to the project budget will amount to over PLN 1.1 billion.

“With the EBRD funds, the financing of the LNG in Świnoujście is now fully secured. The efficient financing structure for the development not only demonstrates excellent project coordination capabilities of the company but also shows that the projects implemented by GAZ-SYSTEM S.A. fit in with the Community's policy to develop an integrated gas transmission network, enhance security of gas supply within the EU and to create a common European energy market. It is also a good indication for the market, especially the shippers who would like to build their purchasing strategies based on LNG imports - observed Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A.

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