The loan facility will also be used to refinance Santos’ existing $A700 million of undrawn bilateral bank facilities that mature between 2011 and 2013, and to increase liquidity.
Santos Executive Vice President and Chief Financial officer Peter Wasow said that the refinancing of these facilities provides significant flexibility to fund Santos’ growth, including GLNG.
“Importantly, this facility provides Santos with significant additional liquidity during the scheduled construction period of GLNG and PNG LNG and delivers average maturities beyond the first LNG production from the two projects,” he said.
With this new facility, Santos will have $A6 billion of available funding capacity, including cash and committed corporate and project debt facilities.
The proposed GLNG project includes an initial 3.6 MMt/a LNG processing train and associated infrastructure as well as a 435 km pipeline linking a compression station at Santos’ Fairview and Roma coal seam gas (CSG) fields in the Surat Basin to the liquefaction plant. Initial production is expected to be 3-4 MMt/a, with a maximum potential production of 10 MMt/a of LNG.