Japan’s JBIC Bank Will Fund New Gas Plant In Russian Stronghold Turkmenistan

Posted: November 14, 2014 in Econ 101, Free Trade, Technology and Energy

SOURCE: http://interfaxenergy.com/gasdaily/article/14188/banks-and-japanese-agencies-to-support-turkmen-gas-facility

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Banks and Japanese agencies to support Turkmen gas facility

By Staff reporter
Posted 14 November 2014 13:54 GMT

The Japan Bank for International Cooperation (JBIC) will fund development a new gas plant in Turkmenistan. The deal, agreed alongside commercial banks in October, will supply loans across three denominations.

The loans will be supplied to national utility Turkmengaz via the State Bank for Foreign Economic Affairs of Turkmenistan and consist of ¥22.4 billion ($194 million), $392 million and €102 million ($127 million) facilities. The project is also being financed by commercial lenders, including Mizuho Bank, the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and the Tokyo branch of Deutsche Bank.

Japan’s state guarantee service NEXI is also acting on the deal. Financing commitments for the project have reached a total of ¥37.4 billion, $653 million and €170 million.

The funding will be used by state-owned Turkmengaz to buy equipment from Kawasaki Heavy Industries to produce gasoline from gas at a site near the capital Ashgabat in Ahal Province.

“The gasoline produced from this plant is expected to be mainly sold domestically for automobile fuel and other [uses] and partly exported to neighbouring countries. Thus it will meet domestic fuel needs and also contribute to the country’s policy agenda” JBIC said in its case notes.

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