Malaysia LNG Tiga Sdn Bhd (MLNG Tiga) is pleased to announce that it has secured two loans totalling US$816 million to part finance the construction of its liquefied natural gas (LNG) plant and related facilities in Bintulu, Sarawak.
The loans comprise a US$651 million 13-year Overseas Investment Credit Facility provided by the Japan Bank for International Cooperation (JBIC) and a US$165 million 8.5-year Term Loan Facility provided by a syndicate of seven international commercial banks, namely The Industrial Bank of Japan Ltd (Labuan), The Bank of Tokyo Mitsubishi Ltd (Labuan), Sakura Bank Ltd (Labuan), Tokai Bank Ltd (Labuan), Citibank Malaysia (Labuan) Ltd, Fuji Bank Ltd (Labuan) and Dai-ichi Kangyo Bank Ltd (Labuan). The agreements for the two loans were signed in Kuala Lumpur today.
MLNG Tiga is a joint-venture between PETRONAS (60 percent), Sarawak State Government (10 percent), Shell Gas BV (15 percent), Nippon Oil LNG (Netherlands) BV (10 percent) and Diamond Gas Netherlands BV (5 percent). It is currently developing the LNG plant, which is Malaysia’s third LNG production facility in Bintulu.
The plant, which is now 45 percent completed, will comprise two liquefaction trains, each with an annual production capacity of 3.4 million tonnes. Related facilities to be built include an LNG storage facility as well as an LNG loading jetty. Scheduled to commence commercial operations in 2003, the plant, together with the two existing plants respectively owned and operated by Malaysia LNG Sdn Bhd (MLNG) and Malaysia LNG Dua Sdn Bhd (MLNG Dua), will make the Bintulu LNG complex the world’s single largest LNG production facility with a combined capacity of about 23 million tonnes per year.
As the largest importer of LNG in Asia, Japan plays a key role in providing support to this project through the financing programme sponsored by JBIC, which is a governmental financial institution to execute Japan’s external economic policy and cooperation. The Industrial Bank of Japan Ltd (Mizuho Financial Group) has been advising MLNG Tiga in the structuring and arrangement of the financing facility.
Legal & Corporate Affairs Division