…As Scorpio Bulkers Adds USD 34 Million to Loan Tally***
Doha-based LNG firm Qatargas has signed a long-term sale and purchase agreement with PetroChina International to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per year.
Under the 22-year SPA, which ends in 2040, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, ExxonMobil and Total, to different receiving terminals across China, with the first cargo to be delivered to China later this month.
“This agreement underscores Qatar’s trusted capability in ensuring energy security to countries around the world, particularly in Asia, as well as its unique position as the world’s largest LNG producer, supplying safely and reliably across the globe,” Saad Sherida Al-Kaabi, President and CEO of Qatar Petroleum, and Chairman of the Qatargas Board of Directors, said.
“With China expected to become one of the world’s largest gas markets, this SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term,” Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer, said.
The SPA allows flexibility in delivering LNG to various receiving terminals across China, including the Dalian, Jiangsu, Tangshan and Shenzhen LNG receiving terminals, utilising Qatargas’ fleet of 70 conventional, Q-Flex and Q-Max LNG vessels.
In the meantime, Monaco-based bulker owner and operator Scorpio Bulkers is pushing ahead with its fleet refinancing efforts having secured a commitment from an unnamed European financial institution for a loan facility of up to USD 34 million.
The loan facility will be used to finance up to 62.5 pct of the fair market value of two Kamsarmaxes, SBI Jive and SBI Swing.
The loan, which is expected to close within the third quarter of 2018, will be comprised of a term loan up to USD 17 million and a revolver up to USD 17 million, Scorpio said.
It a final maturity date of seven years from signing date and bears interest at LIBOR plus a margin of 2.35% per annum.
The loan is expected to increase the company’s liquidity by approximately USD 10 million after repayment of the vessels’ existing debt.
The latest deal comes just a month after Scorpio received a commitment for a loan facility of up to USD 184 million.
The loan, secured from Nordea AB and Skandinaviska Enskilda Banken AB, will be used to finance six Ultramaxes.
The company has been on a major capital raising camping over the recent period which also included inking a loan of USD 60 million in July and USD 30 million in June 2018 for vessel refinancing.
World Maritime News
