Ten Institutions Including Shinhan Bank Join as Main Lenders
A project finance (PF) loan agreement worth approximately 1.14 trillion KRW has been signed for the development of the 'Northeast Asia LNG (Liquefied Natural Gas) Hub Terminal' project.
Northeast Asia LNG Hub Terminal, a special purpose company (SPC) established to promote the construction of the Yeosu Myeodo LNG Terminal, announced on the 28th that a PF agreement has been reached. The agreement was arranged by Shinhan Bank, with 10 institutions including Industrial Bank of Korea and the Regional Revitalization Fund participating as the main lenders.
Ahn Younghun, President of Northeast Asia LNG Hub Terminal (left), and Lee Jungwoo, Head of Shinhan Bank Headquarters, are posing for a commemorative photo at the PF agreement signing ceremony held on the 28th at BS Hanyang Tower in Songpa-gu, Seoul. Photo by BS Hanyang
This project is the largest among those selected by the Regional Revitalization Investment Fund, which is funded by the Ministry of Economy and Finance and Korea Development Bank, among others. It is also the first time that a PF loan agreement has been signed for such a project. The participation of the PF lending group was facilitated by securing repayment stability through the Regional Revitalization Special PF Guarantee provided by the Housing and Urban Guarantee Corporation.
The Northeast Asia LNG Hub Terminal development project is a joint investment by BS Hanyang, GS Energy, Jeollanam-do Province, and Yeosu City. Approximately 1.49 trillion KRW will be invested to build three 200,000 kl-class LNG storage tanks and supporting facilities in the Myeodo area of Yeosu, Jeollanam-do. Units 1 and 2 are scheduled to begin commercial operation at the end of 2027, and Unit 3 at the end of 2028. The overall completion is planned for March 2029.
Upon completion, the terminal will be able to supply 3 million tons of LNG annually. Major consumers are expected to include energy companies near the Yeosu National Industrial Complex.
A representative from Northeast Asia LNG Hub Terminal stated, "We plan to secure a diverse range of consumers, including LNG combined cycle power generation, district energy, and LNG bunkering. In the long term, we aim to grow into an international LNG hub encompassing logistics, finance, and LNG trading."
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