chapter  8
8 Pages

Déjà Vu or a New Paradigm?

David provides commercial, financing and strategic support to national and international energy companies globally. He also gives commercial training courses on LNG and is a Fellow of the Oxford Institute for Energy Studies and has co-authored two books on Asian and Middle Eastern gas, published by the Institute. This chapter presents an overview of the LNG business, to give the reader an understanding of the complexities of the sector, the factors driving the development of LNG projects and therefore the risks facing lenders. The chapter examines why project finance is frequently used as a source of finance for LNG projects and then examines the risks faced by lenders in lending and how these risks can be mitigated. Specific project financing examples will be given from three financings. The chapter's opinion of the future of project finance in the development of LNG projects. There are two main processes for liquefying gas, the multi-component refrigerant process and the Phillips Cascade Process.