PERU LNG Secures $2.25 Billion in Third Party Financing

    LIMA, Peru, June 26 /CNW/ -- PERU LNG announced today that they have
secured $2.25 Billion in loans from third party credit agencies to finance the
construction of the PERU LNG project. The PERU LNG project is the largest
direct foreign investment in Peru's history, with a total project cost
estimated at $3.8 Billion including financing costs.
    PERU LNG is a partnership between Hunt Oil Company of Dallas, Texas
(Project Leader, 50%), SK Energy of South Korea (20%), Spain's Repsol YPF
(20%) and Marubeni of Japan (10%).
    "PERU LNG is the largest single private-sector project in Peru's history
and will be one of the most significant contributors to Peru assuming a much
more active role in the world economy," said Barbara Bruce, General Manager,
    The project financing comprises loans from the Inter-American Development
Bank (IADB), the International Finance Corporation (IFC), The Export-Import
Bank of the United States (US Ex-Im Bank), The Export-Import Bank of Korea
(K-Exim Bank), the Italian Export Credit Agency, SACE, Societe Generale, BBVA,
Calyon, Sumitomo, ING, Mizuho and Bank of Tokyo-Mitsubishi. PERU LNG expects
to complete its financing process later this year with the close of its bonds
coming from Peruvian capital markets.
    The IADB's participating in this financing constitutes the largest loan
of this nature in the Bank's history. They represent a new threshold in
lending capacity for the IADB, who previously had a $200 Million limit for any
one project/borrower. The IFC loan is the largest ever made in Latin America
to date.
    "We have been especially pleased with the cooperative effort between the
sponsors and PERU LNG," said Steve Suellentrop, President, Hunt LNG. "The
complexity of this project is significant and the stabilizing effect of these
financial institutions' participation with PERU LNG will serve Peru well over
the life of the project."
    Natural gas will arrive at the PERU LNG plant through a new 408-kilometer
pipeline that will connect the plant with the existing Camisea-Lima pipeline
in the area of Chiquintirca (Ayacucho). The PERU LNG plant is on schedule and
on budget, and will have the capacity to produce 4.4 million metric tons of
LNG per year, with initial deliveries of LNG anticipated in the first half of
    The project has also launched sustainable development programs in the
areas of influence of the project to promote agricultural development and
capacity building for local leaders to facilitate the implementation of
development and infrastructure programs.
    "PERU LNG is a world-class infrastructure project that will position Peru
as a leader in the liquid natural gas industry in Latin America. The income
generated by PERU LNG will be a great stimulus of development and growth for
the country of Peru and its people," Bruce said.

For further information:

For further information: US Contact, Ambassador Jeanne Phillips of Hunt 
Oil Company, +1-214-978-8534; or LIMA Contact, Kelly Alderson of PERU LNG, 

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