IFC lends $300m to Peru LNG
The World Bank's International Finance Corporation (IFC) today signed a $300 million financing agreement with Peru LNG to develop Latin America's first liquefied natural gas export project.
The loan by IFC, the World Bank's private-sector lender, is part of $2.25 billion in financing by international banks that were part of the signing.
Other lenders for the $3.8 billion project include the Inter-American Development Bank, the Export-Import Bank of the US, Export-Import Bank of Korea, and SACE of Italy.
The project, which is expected to start up operations in 2010, is being developed by a consortium headed by US-based Hunt Oil and includes Spain's Repsol-YPF, South Korea's SK Energy, and Japan's Marubeni Corporation.
"Today we have reached a milestone on the road toward making a project a reality that, with IFC's help, will enable local Peruvian people to receive tangible benefits and follow best environmental and social practice," Steve Suellentrop, Peru LNG president, said in a statement, Reuters reported.
Peru, which already enjoys a surplus of electricity, has proven gas reserves of 13.4 trillion cubic feet, which are being eyed by its energy-hungry neighbors in South America.