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Poles apart

01 July 2005

The difference between LNG financing in Spain and Italy could not be starker – Spain now has a history of deal closures, while Italy procrastinates. But Spanish utilities and familiar lenders offer a link between disparate regulatory regimes.

Read more: [BOT] [project financing] [editor] [LNG projects]

The billions of dollars pouring into upstream LNG projects in the Middle East is beginning to manifest itself further down the supply chain in the form of LNG regas terminals across Europe. But contrary to the EU mantra of a single market, sponsors are finding some national jurisdictions more welcoming to prospective LNG regas investment than others.

The most recent European deal – financing for the Southhook, Milford Haven terminal in the UK (the downstream end of the Qatargas 2 project) – went smoothly. The deal benefited from strong sponsors – Qatar Petroleum (QP) and Exxon – that acted across the whole supply chain down from the Qatargas II plant, and the terminal was granted an exemption to third party access rights.

The whole Qatargas project was applauded for pioneering a new integrated supply chain model. And although it is widely accepted by the market that QP's move downstream was more a...


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