Project Financing for FSRU Operation Project in Senegal
Supporting Japanese Company in Strengthening International Competitiveness in Marine Development Sectors
- Region: Africa
- Marine and Aerospace
- Project Finance
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement in project financing*1
amounting to up to approximately USD35 million (JBIC portion) with SENEGAL LNGT COMPANY LIMITED (SLNG) in the Republic of the Marshall Islands, which is incorporated by Mitsui O.S.K. Lines, Ltd. (MOL). The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to approximately USD71 million.
In Senegal, there is an ongoing project in which a floating storage and regasification unit (FSRU) owned by SLNG will regasify liquified natural gas (LNG), which will then be used to generate electricity on an LNG powership. The generated electricity will be sold to Société nationale d'électricité du Sénégal, a state-owned power company in the country. The loan is intended for financing the FSRU project and will contribute toward the country's energy transition.
The Government of Japan endorses in its Basic Plan on Ocean Policy, the strengthening of the international competitiveness of Japanese marine industries, and advocates in the j-Ocean roadmap, which was formulated under the Basic Plan, improving Japanese technical capability and productivity in a wide range of marine development sectors. Supporting MOL in maintaining and improving its know-how for operation and maintenance of FSRUs in this project will contribute to MOL improving its international competitiveness in the marine development sectors.
As Japan's policy-based financial institution, JBIC will continue to financially support the overseas business expansion of Japanese companies, including in Africa, by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
Project finance is a financing scheme in which repayments for a loan are made solely from the cash flow generated by the project.