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Australia: export credit and infrastructure
07 February 2012
The capital fuel required to keep major Australian energy and related infrastructure projects on track is running out. As the global economy stutters into 2012, John Geddie asks whether export credit will be able to keep this growth engine ticking over.
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Australia
project finance
export credit project
Santos
Wiggins Island
EFIC
Sace
Taylor Dejongh
Gladstone LNG
When financial advisers Taylor DeJongh began working for Santos to raise $1.2 billion for its Gladstone LNG (GLNG) project in Queensland at the beginning of 2011, the buzz around Australian LNG was frenetic.
Investors surged to take interest in a market that was tipped to overtake Qatar as the world’s largest exporter of LNG. But just twelve months later, when pen was put to paper on 22 December 2011, it was a surprisingly more muted atmosphere.
In the intervening period, banks had suffered the full onslaught of Europe’s debt crisis and Taylor De Jongh had to bulk up Santos’ export credit agency (ECA) component to meet the financing gap. The rich vein of optimism around Australian LNG projects was waning. Analysts polled by Reuters in early 2012, catechized escalating costs and delays stating that the average project now expects hold-ups of nine months to a year and comes...
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