financing lng projects and infrastructure - · pdf filea member of mufg, a global financial...
TRANSCRIPT
A member of MUFG, a global financial group
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Financing LNG Projects and
Infrastructure
OCTOBER 2016
2
Bank of Tokyo-Mitsubishi UFJ
BTMUinPhilippines• FirstestablishedpresenceinthePhilippinesin1918astheManilaBranchoftheYokohamaSpecieBank.• FullBankingservicesofferedsince1995.• FinancinginfrastructureprojectsinthePhilippinessince1993PagbilaoPowerand1997MRT3.• Acquired20%shareofSecurityBankCorporaQoninthePhilippinesin2016.
MitsubishiUFJFinancialGroup(MUFG)isoneoftheworld’sleadingfinancialgroups.MUFGaimsto“betheworld’smosttrustedfinancialgroup”BankofTokyo-MitsubishiUFJ(BTMU)isthecommercialbankunitofMUFG.BTMUisJapan'slargestandoneoftheworld'slargestcommercialbanks,withofficesthroughoutJapanand40othercountries,providingprofessionalfinancialsoluQonstoourvaluedcustomers.
3
Investment Banking Division for the Americas, New York & Los Angeles
Investment Banking Division for Europe, Middle
East and Africa, London Structured Finance Division, Financial Solutions Division,
Syndication & Product Planning Division, Tokyo
Australian Structured Finance Office,
Sydney & Melbourne
Asian Investment Banking Division, Singapore &
Hong Kong
• AsianInvestmentBankingDivision(AIBD)isheadquarteredinSingaporeandHongKong• OurInvestmentBankingDivisionsprovideprofessionalinvestmentbankingsoluQonsto
ourclientsacrosstheglobe.
BTMUInvestmentBankingDivisionGlobalNetwork
BTMU - Asian Investment Banking Division
4
BTMU as Project Finance Market Leader
Global Initial MLA League Table (2015 Full Year)
Rank Mandated lead arrangers US $ MM Share Deals
1 MUFG 16,127 5.8 143
2 SMBC 12,832 4.6 108
3 Bank of Taiwan 12,053 4.3 1
4 State Bank of India 10,855 3.9 30
5 Mizuho 8,730 3.1 79
6 Credit Agricole 8,286 3.0 90
7 ING 7,852 2.8 89
8 Santander 6,879 2.5 91
9 BNP Paribas 6,683 2.4 76
10 Societe Generale 6,568 2.4 70
Asia Pacific Initial MLA League Table (2015 Full Year) Rank Mandated lead arrangers US $ MM Share Deals
1 Bank of Taiwan 12,053 15.8 1
2 State Bank of India 10,855 14.2 30
3 MUFG 5,386 7.1 38
4 KDB 4,422 5.8 12
5 SMBC 3,667 4.8 25
6 Mizuho 2,696 3.5 23
7 Commonwealth Bank of Australia 2,630 3.5 22
8 Westpac 2,540 3.3 23
9 ANZ 2,513 3.3 21
10 National Australia Bank 1,995 2.6 26
(Source) Project Finance International (PFI)
5
2014 US A 2014 Indonesia 2014 US A 2014 UnitedS tates 2014 US A 2013 US A 2012 Australia 2012 Australia
2012 US A 2012 Australia 2012 Australia 2009 P apuaNewGuinea 2009 R ussia 2008 Angola 2008 P eru 2008 Australia
2015 K orea 2014 K orea 2014 India 2014 C hina 2013 Netherlands 2013 Australia 2012 B runei 2012 Australia
2014 S ingapore 2014 Netherlands 2013 Indonesia 2012 Indonesia 2009 US A 2008 C hile
US D 16 .00 billion USD 3 .21billionUSD 4 .34 billion USD 1.54 billion USD 4 .33 billion USD 7.42 billion USD 325million USD 4 .40 billion
Ichthys LNG P tyL td Wheats toneLNG P ro jec t
F reepo rtL iquefac tion(T rain2)
D onggiS eno ro LNG F reepo rtL iquefac tion(T rain1)
C ameronLNG L LC S abineP as s L iquefac tionL LC
S abineP as s L iquefac tionL LC
J B IC /NE X ICoor dinator ,J ointLeadAr r anger andBookr unner ,Inter cr editor Agent
MLA/EC A C oordinator/Ac c ountB ank
J B IC /NE X ICoor dinator ,J ointLeadAr r anger andBookr unner ,Inter cr editor Agent
Fac ility Agent,J B IC /NEXIC oordinator
MLA ,B ookrunner J oint L eadA rranger,B ookrunner
MLA ,NEXIAgent F inanc ialAdv isor,Fac ility Agent
US D 2 .25billion USD 1.50 billionUSD 3 .63 billion USD 8 .50 billion USD 302 million USD 1.95billion USD 1.40 billion USD 450 million
P eruLNG P luto LNGS abineP as s L iquefac tion
A us traliaP ac ific LNG P ro jec t
Go rgonP ro jec t P NG LNG S akhalinIIphas e2 A ngo laLNG
J ointLeadAr r anger /Bookr unner ,Co-SyndicationAgent
MLA FA ,MLA ,Fac ility Agent,A c c ountB ank S ec urity Trustee,S wapC ounterparty
MLA NEXIAgent、ModelingB ank MandatedL eadA rranger MandatedL eadA rranger F inanc ialAdv isor,MLA andJ B IC Agent
US A 184 million J PY 16 .00 billionUSD 251million USD 1.02 B illion USD 230 million USD 787million USD 608 million USD 1.50 billion
LNG F ive(B runei)L td T rans P ac ific S hipping1L td
KOGA S LNG Ves s elR efinanc ing
KOGA S NewLNG Ves s els
P etronetLNG P ro jec tJ ourney MaltLNG R efinanc ing A P LNG T rans po rt
MandatedL eadA rranger MandatedL eadA rranger MLA MLA P art ic ipant MLA MLA MLA ,C ommerc ialB ank Fac ility Agent,A c c ountB ank
USD 1.11billionS GD 1.11billion EUR 80 million USD 310 million USD 175million USD 680 million
Quintero LNG T erminalS ingapo reLNG C o rp GA T E LNG B reakB ulk R o tterdam
P T HoeghLNG L ampung
P T Nus antaraR egas Manzanillo LNG
MLA MLA ,Documentation/C oordinationB ank
MLAS truc turingB ankDueDiligenc eB ank
MLA MandatedL eadA rranger S eniorA rranger
Our LNG Track Record Across the Value Chain
Liquefaction Transport
Regasification
6
Our Expertise Proven by Industry Awards
(Source) Project Finance International (PFI), Global Finance, Euromoney, IJGlobal
Asia-Pacific’sDealoftheYear
Ichthys LNG Pty Ltd.
Australia USD16bn
Bookrunner and Mandated Lead Arranger
Asia-Pacific’sOil&GasDealoftheYear
Australia Pacific LNG
Australia USD8.5Billion
Mandated Lead Arranger
Americas’BondDealoftheYear
FPSO Cidade de Anchieta Brazil
USD 500m
LaFnAmericaUpstreamOil&GasDealoftheYear
Rating Adviser and Placement Agent
Nghi Son Refinery
Vietnam USD 5,000m
Asia-PacificPetrochemicalsDealoftheYear
Financial Advisor, MLA, DD/Modelling Bank,
Offshore Account Bank, JBIC agent
AsiaPacificOil&Gas
DealoftheYear
Donggi-Senoro LNG
Indonesia USD 1,527m
ECA Coordinator, Mandated Lead Arranger,
Security Agent, Account Bank
2014
Asia-Pacific Bank of the Year
2013
Global Bank of the Year
2012
Global Arranger
2012
Latin America Arranger
2012
North America Financial Adviser
2015
GlobalBankoftheYear
GlobalProjectFinanceBankofTheYear2015and2013/Asia-PacificProjectFinanceBankofTheYear2015
7
Rationale for LNG in the Philippines
• In 2014, the Philippines imported about half ofits total energy requirements. Reliance onimportedenergyisrisingasdomesQcproducQoncannotkeeppacewithrisingdemand.
• DomesQc Natural Gas and Oil producQoncontributedabout6%primaryenergysupplyandsubstanQallyusedforpowergeneraQon.
• OilandgasproducQonisprojectedtodeclineastheexisQngfieldsaredepleQng.
• LNG Imports are a soluQon to diversify energysources and ensure security of natural gassupply.
(Source) International Energy Agency
(Source) Wood Mackenzie
-
20.00
40.00
60.00
80.00
100.00
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
20
15
2016
20
17
2018
20
19
2020
20
21
2022
20
23
2024
20
25
'000 BOEPD Philippines Oil & Gas Production
Gas Production Oil Production
2014 Philippines Energy Mix
Imported Coal Imported Crude Oil Imported Oil Products Imported Biofuel Domestic Coal Domestic Oil Domestic Natural Gas Domestic Hydro Domestic Geothermal Domestic Biofuels
DomesQcEnergySupply
NaturalGas
8
The entire natural gas/LNG value chain must be commercially viable and bankable.
Key Issue : Risks along the LNG Value Chain
UpstreamGasProducQon
GasLiquefacQon
LNGTransportaQon
LNGRegasificaQon
GasPipelineDistribuQon
EndUser/PowerPlant
• LNGInfrastructureisameanstobringnaturalgastoEndUserssuchasPowerPlants.
• LNGinfrastructureincludesLNGTransportaQonandLNGRegasificaQon.
• LNGinfrastructureisdevelopedandoperateswithinthenaturalgasvaluechain.
9
The entire natural gas/LNG value chain must be commercially viable and bankable.
Key Issue : Risks Along the LNG Value Chain
UpstreamGasProducQon
GasLiquefacQon
LNGTransportaQon
LNGRegasificaQon
GasPipelineDistribuQon
EndUser/PowerPlant
10
There is a mismatch between commercial risk and the customary LNG contract structure.
Key Issue : Merchant Market Risk for Power and Slow LNG demand take up
• PhilippinesLNGdemandisonlyexpectedtopickupfrom2022onwardsandgraduallyincreasing.TheiniQalyearsoflowuQlisaQonmaynotbeabletosupportdebtservice.
• LNG-firedpowergeneraQonisexpectedtocostmorethancoal,hencewouldbeunabletooperateasbase-loadgeneraQon.Amid-meritLNG-firedpowerplantprofiledoesnotmatchthecustomarytake-or-payobligaQonsunderLNGSPAs.ExisQngGas-firedplantsbenefitfromPPAstosupportthegastake-or-payobligaQon.
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
5
mpta Philippines Projected LNG Demand
LNG Demand
LNG Terminal Capacity
(Source) Wood Mackenzie
11
Case Study : Singapore LNG
WhentheSingaporeLNGTerminalwasbeingdeveloped,thepriceofLNGwashigherthanHSFO.ExpectedrampupofdemandwasslowonaccountofexisQngGasSupplyContractswithtake-or-paycondiQons.InsupportofthedevelopmentoftheSingaporeLNGTerminalforsecurityofsupply:• Moratoriumonthefurtherimportofnaturalgas• LNGVesQngContracts• DevelopmentoftheSingaporeLNGTerminaltakenoverbytheGovernmentofSingapore.
0 1 2 3 4 5 6 7 8 9
10
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
20
15
2016
20
17
2018
20
19
2020
20
21
2022
20
23
2024
20
25
MPTA Singapore Projected LNG Demand
Projected LNG Demand Regasification Capacity
(Source) Wood Mackenzie
Image courtesy of Singapore LNG Corporation Pte Ltd.
12
Case Study : Singapore LNG
SingaporeLNGcommencedoperaQonsinMay2013andwasofficiallyopenedinFebruary2014.InDecember2014,SingaporeLNGsecuredaSGD1.11billiontermloanfromcommercialbankstorefinanceexisQngshareholderloansoriginallyusedtofinancetheterminal.Thetermloanisunsecured,butbenefitsfromashareholderback-stopfacilityofaboutSGD300million.In2014,Singaporeimportedabout1.81mpta(2.2259MTOE)ofLNGagainstaterminalcapacityof6.0mpta.
13
Case Study : Pacific Light Power Refinancing
PacificLightPower(“PLP”)isa800MWCCGToperaQnginSingapore.ShareholdersincludePetroliamNasionalBhd(30%)andFPMPowerHoldings(70%),ajointventurebetweenFirstPacificandManilaElectricCo.FaciliQesincludeda10-yearUSD700mfacility,USD230millionSBLCandUSD65millionworkingcapitalfacility.PacificLightPowercommencedoperaQonin2014andisthefirstpowerplanttobecompletelyfuelledbyLNG.
14
Case Study : Pacific Light Power Refinancing
InfinancingPacificLightPower,lendershaveconsideredposiQvely• LNGVesQngcontractsthatrequiresPLPtosupplyacontractedquanQtyofelectricitybaseduponaformulaprice.• ExisQngLicensedGeneraQonCapacityoftheSingaporemarketandtheprojectedcompeQQonfromotherCCGTs• ComparaQvelyuniformgeneraQonmarkeQngcomprising75%CCGT.• LendersunderstandingoftheoperaQonofthemerchantpowermarketinSingapore.LendershavebeenfinancingpowerprojectssincetheprivaQsaQonin2008.• MoratoriumonaddiQonalPNGimports,triggeringtheuseofLNGtopricemarginalsupply.
(Source) Energy Market Authority
15
Case Study : Guangdong LNG Terminal 2004
• InOctober1998,aGuangdongLNGTerminalprojectwasgiventheiniQalgo-aheadbytheChinesegovernment.Theprojectwascomprisedofa3.3mtpaLNGimportterminalanda213kmpipelineinChentoujiao,Shenzhen,GuangdongProvince.
• EsQmatedprojectcostwasUSD600m.
16
Power Plant (Offtake 3) Power Plant
(Offtake 3) Power Plant (Offtake 3) Power Plants
Case Study : Guangdong LNG Terminal 2004
Guangdong Dapeng LNG Company Ltd
CNOOC Guangdong
Province consortium
Towngas HK Electric British Petroleum
New Built LNG Vessel SPV
STTS Group (LNG Terminal EPC
Contractor) Shipyard China Petroleum
Pipeline Engineering (Pipeline EPC Contractor)
North West Shelf Venture
(LNG Supply)
Power Plant (Offtake 1) Power Plant
(Offtake 2) Power Plants (Under Construction)
TimeCharterAgreement
PipelineEPCTerminalEPC
ShipBuildingContract
17
Case Study : Guangdong LNG Terminal 2004
FinancingIssues
• RegulatoryIssues• DemandRisk
• ConstrucFonRisk
• Project-on-ProjectRisk• OTakerCreditRisk
• CashflowRiskThefirstnon-recoursedealinChinafinancedpurelybyChinesebanksformorethanRMB5billionwassignedonApril30,2004.
18
This presentation material is provided to our customers and the potential partners on a private and confidential basis. The Bank Of Tokyo Mitsubishi UFJ, Ltd. (“BTMU”) retains copyright to this Document and no part of this Document may be reproduced in whole or in part, nor may any of its contents be divulged to third parties, without prior written consent of BTMU. BTMU has based this document on information available to the public from sources BTMU believes to be reliable. BTMU and its subsidiaries and affiliates accept no liability whatsoever to any third parties resulting from any unauthorised distribution. BTMU and its subsidiaries, affiliates, directors and employees accept no liability whatsoever for any reliance on the information contained in the Document and make no representation or warranty as to its accuracy and completeness. BTMU accepts no responsibility for errors of fact or for any opinion expressed in this document. The views contained in this Document (including any statements and forecasts) are solely those of BTMU and are subject to change without notice. BTMU is under no obligation to correct any inaccuracies in the Document or update the information contained therein or to notify recipients of this Document of any such change. Recipients must make their own independent judgment with respect to any matter contained in this document. Neither BTMU nor any of its subsidiaries, affiliates, directors and employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this Document Nothing in this presentation material shall constitute any commitment by BTMU to provide a service, a facility and/or financing. Any such agreement to provide a service, a facility and/or financing would be subject to (but not limited to) the necessary credit approvals, internal approvals and execution of a legally binding agreement (the “Agreement”). In the event of any inconsistency or any conflict between the provisions or information contained herein and the Agreement, the Agreement shall prevail. Neither this presentation material nor any other communication prepared by BTMU is or should be construed as investment advice, a recommendation to enter into a particular transaction or pursue a particular strategy, or any statement as to the likelihood that a particular transaction or strategy will be effective in the light of your business objectives or operations. Any decision to enter into a transaction will be yours alone, not based on nor in reliance on any information prepared or provided by BTMU. BTMU hereby disclaims any responsibility to you concerning the characterisation or identification of terms, conditions, and legal or financial or accounting or tax or other issues or risks that may arise in connection with any particular transaction or business strategy. You should obtain separate independent professional, legal, financial, tax or other advice, as appropriate. Copyright 2016 The Bank of Tokyo-Mitsubishi UFJ, Ltd. All rights reserved.
Disclaimer