U.S.A./Loan Insurance for Cameron LNG Project
～First successful financing close for US Shale Gas LNG Project participated in by Japanese companies ～

Nippon Export and Investment Insurance ("NEXI") has decided to provide its loan insurance to support financing for the Cameron LNG Project ("Project") under which the liquefaction facility will be constructed and operated by Cameron LNG LLC ("Cameron"), incorporated in U.S.A. by Project sponsors including Sempra Energy, Mitsui & Co., Ltd.("Mitsui"), Mitsubishi Corporation ("Mitsubishi"), Nippon Yusen Kabushiki Kaisha ("NYK"), and GDF SUEZ S.A. ("GDF_SUEZ").

 

The Project will utilize Cameron's existing LNG receiving terminal located in Hackberry, Louisiana, U.S.A. to develop, construct and operate three new liquefaction trains with an export capability of 12 million tonnes per annum ("Mtpa"). Mitsubishi, Mitsui and GDF_SUEZ ("Tolling Customers") have entered into a 20-year natural gas liquefaction tolling agreement with Cameron respectively so that each Tolling Customer could process the natural gas through the liquefaction facility and export up to 4 Mtpa LNG to other countries including Japan.

 

Cameron received the required permits for Project construction and operation from the Federal Energy Regulatory Commission (FERC) in June, 2014 ("FERC Order").　Cameron expects shortly to receive the final authorization from U.S. Department of Energy (DOE) to export LNG from the Cameron LNG terminal to Non-Free Trade Agreement countries ("Non-FTA Export Authorization"). The export of natural gas to Japan is expected to begin in 2018 at the earliest.

 

This is the first financing successfully closed for a US shale gas LNG project participated in by Japanese companies. NEXI will provide the Loan Insurance for Natural Resources and Energy as this Project will enable the off-take of the US LNG by Japan which has no access to the US LNG at present, thus contributing to securing a stable and diversified energy supply to Japan.

 

For this Project, Cameron is planning to raise fund of about USD7.4 billion in total through project financing, and NEXI will provide the loan insurance to 15 commercial banks, which will finance about USD 2.0 billion, including Sumitomo Mitsui Banking Corporation, The Bank of Tokyo Mitsubishi UFJ, Ltd. and Mizuho Bank, Ltd. as well as two regional banks (The Chiba Bank, Ltd and The Shizuoka Bank, Ltd). It is the second biggest transaction covered by NEXI's loan insurance next to Ichthys LNG Project in Australia in terms of underwritten amount. Japan Bank for International Cooperation ("JBIC") will also provide its direct loan to this Project.

 

NEXI will continue to support projects that will promote stable resource and energy supply to Japan.

 

(Reference)

Insured Amount	USD 2.0 billion
Covered Risk	Political Risk 100% and Commercial Risk 97.5%
Tenor	Approx. 16 years