Narrative
Full Description
Project narrative
On October 12, 2023, financial close was reached on a deal in which a syndicate of 24 banks — including the Agricultural Bank of China (ABC), the Bank of China (BOC), China Construction Bank Corporation (CCB), and the Industrial and Commercial Bank of China (ICBC) — entered into a $4.387 billion USD syndicated loan agreement with Ras Laffan Petrochemicals (RLP) — a special purpose vehicle (SPV) and joint venture of Chevron Phillips Chemical Company LLC (CPChem), a Delaware-incorporated joint venture equally owned by Chevron U.S.A. Inc. and Phillips 66 Company (30% equity stake) and QatarEnergy (70% equity stake) — for the Ras Laffan Petrochemicals Complex Project. This loan was divided into four tranches: a $1.931 billion USD uncovered term loan tranche with a maturity period of 14 years and eight months (14.666 years) and a final maturity date of June 15, 2038; a $960.00 million USD uncovered Islamic loan tranche with a maturity period of 14 years and eight months and a final maturity date of June 15, 2038; a $1.000 billion USD export credit facility with a maturity period of 16 years and eight months (16.666 years) and a final maturity date of June 15, 2040; and a $496.00 million USD export credit facility tranche with a maturity period of 16 years and eight months (16.666 years), a final maturity date of June 15, 2040, and with coverage by insurance provider SACE S.p.A.. 17 lenders, including ABC, BOC, CCB, and ICBC, contributed $113.59 million USD to the $1.931 billion USD term loan tranche. Record ID#104894 captures ABC's contribution. Record ID#104895 captures BOC's contribution. Record ID#104896 captures CCB's contribution. Record ID#104897 captures ICBC's contribution. In addition to the Chinese state-owned banks, the following lenders contributed to the $1.931 billion USD term loan tranche: KEXIM Global (Singapore) Ltd., Abu Dhabi Commercial Bank PJSC (ADCB), Citibank N.A., Crédit Agricole Group, HSBC, Korea Development Bank (KDB), Mizuho Bank, MUFG Bank, Ltd., National Bank of Kuwait S.A.K. (NBK), Société Générale S.A. (SocGen), Standard Chartered Bank Plc, Sumitomo Mitsui Banking Corporation (SMBC), and Arab Energy Fund (formerly Apicorp). Three lenders contributed $320.00 million USD each to the $960 million USD Islamic loan tranche; Boubyan Bank, Kuwait Finance House (KFH), and Islamic Development Bank. The $1 billion USD export credit facility was provided solely and entirely by KEXIM. 8 lenders contributed to the $496 million USD export credit facility tranche. Record ID#104898 captures BOC's contribution. Record ID#104899 captures ICBC's contribution. In addition to BOC and ICBC, the following lenders contributed to the tranche: CaixaBank S.A., Crédit Agricole Group, HSBC, JPMorgan Chase Bank, N.A., Credit Suisse AG, and Banco Santander, S.A.. The proceeds were to be used by the borrower to construct a $6 billion USD integrated polymers complex in Ras Laffan Industrial City on a 435-acre project site, including an ethane cracker with a capacity of 2080 KTA of ethylene (one of the largest in the world) and two high-density polyethylene (HDPE) derivative units (trains) with a total capacity of 1680 KTA. The facility would produce 2.1 million tons of ethylene per year along with 1.7 million tons of polyethylene derivatives and be constructed with energy-saving technology and use ethane for feedstock, which was expected to lower greenhouse gas emissions than other facilities. The complex would raise Qatar's overall petrochemical production capacity to almost 14 million tons per annum. In addition to the debt, QatarEnergy provided $2.04 billion USD and CPChem provided $870 million USD. Muntajat served as product off-taker and QatarEnergy served as feedstock supplier. CPChem would provide project management services and its MarTech™ loop slurry process would be used to produce the polyethylene. SCJV, a joint venture between Samsung Engineering CO., Ltd. and CTCI Corporation were the engineering, procurement, and construction (EPC) contractors for the ethane cracker. Tecnimont S.p.A. won the EPC contract for the polyethylene units. Emerson Electric Co. won the main automation contract. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited provided its longitudinally submerged arc welding pipes for the project. The final investment decision (FID) was made in January 2023. The complex was expected to begin production in late 2026. Full commissioning was due in 2027. Construction began with early works in June 2022. On February 19, 2024, the Emir of Qatar Sheikh Tamim bin Hamad Al Thani laid the foundation stone for the ceremonial groundbreaking ceremony.
Staff comments
1. IJGlobal lists seven lenders with contributions for each lender to the $496 million USD export credit facility tranche, while PFI lists eight lenders. AidData has assumed the eight lenders was correct, and has coded accordingly. 2. The individual contributions of the eight lenders to this $496 million USD export credit facility tranche are unknown. For the time being, AidData has estimated the contributions of BOC and ICBC by assuming that each lender contributed equally ($62,000,000 USD) to the tranche.