Japan’s Inpex said on Tuesday it has completed previously launched refinancing of part of the funding for its Ichthys liquefied natural gas export project in Australia.
The refinancing deal includes a portion of the project finance loans arranged in 2012 with export credit agencies and commercial banks. It includes loan conversions and improved borrowing conditions.
Inpex said it launched the refinancing in March after Ichthys LNG achieved financial completion in December 2019 and was now continuing stable production.
“The project’s smooth progress despite the impact of the decline in oil prices caused by the spread of Covid-19 and other factors was evaluated favorably”, Inpex said.
Total project finance loans amount to about $15.6 billion, of which the refinancing amount covered in the refinancing agreement is about $8.3 billion.
The deal involves seven export credit agencies and 28 commercial banks.
Inpex said the refinancing deal would boost the value of the project by reducing the financial commitment of Ichthys LNG.
Furthermore, the deal is part of Inpex’s cost reduction initiatives in response to the decline in oil prices and the company sees the deal improving the resilience of its business structure.
The Ichthys project produces LNG at the 8.9 million tonnes per year plant at Bladin Point near Darwin.
Natural gas arrives in Darwin from the giant Ichthys field offshore Western Australia via an 890-kilometre export pipeline.
Ichthys LNG is a joint venture between operator Inpex, major partner France’s Total, and the Australian units of CPC Corporation Taiwan, Tokyo Gas, Osaka Gas, Kansai Electric Power, JERA and Toho Gas.