Hyundai Engineering, Hyundai Engineering & Construction and state-run Korea Gas Corp.`s LNG import terminal project.
State entities Export-Import Bank of Korea and the Korea Trade Insurance Corporation have packaged a total of $2.3 billion to back a Korean consortium in the order to build Kuwait`s first terminal for LNG imports
Exim Bank supplies $1.15 billion ($630 million in loans and $520 million in credit guarantee), and the rest by the state insurance company, the Exim Bank said on Sunday.
The LNG import terminal project costing a total of $3.6 billion has been commissioned by the Kuwait Integrated Petroleum Industries Company (KIPIC), an affiliate of state-run Kuwait Petroleum Corporation (KPC). The payment is guaranteed by KPC.
The policy institutions supply the bulk $2.3 billion of the $2.6 billion the three Korean builders - Hyundai Engineering, Hyundai Engineering & Construction and state-run Korea Gas Corp. (KOGAS) - need to complete the project.
The mega project involves over 130 Korean small and medium parts suppliers and subcontractors.
Kuwait plans to inject a total of $114 billion into its oil refining and petrochemical industries by 2022 based on a mid-and long-term strategic plan from KPC.
In May 2013, the Exim Bank provided $1.1 billion to KPC in its investment in an oil refining project in Vietnam. In October 2015, the Exim Bank signed a $5 billion financing agreement with KPC.
By Lee Seung-yoon and Minu Kim
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]