South Korean LNG terminal secures $815 million loan

BS Hanyang said in a statement that Shinhan Bank led the project financing loan, which was supported by nine other financial institutions.

This is the largest-ever project finacing deal under Korea’s regional vitalization fund and the first to reach full loan execution, backed by a special PF guarantee from Urban Guarantee Corporation (HUG), according to BS Hanyang.

Co-developed by BS Hanyang, GS Energy, Jeollanam-do, and Yeosu, the NEA LNG terminal will feature three 200,000-cbm LNG storage tanks, supplying 3 million tons of LNG annually upon full completion in 2029, the firm said.

In May 2024, South Korea’s GS Engineering & Construction won a contract from the joint venture consisting of Hanyang and GS Energy to build the Northeast Asia LNG hub terminal.

BS Hanyang has a 60 percent share in the project and GS Energy holds a 40 percent stake. Both GS E&C and GS Energy are part of South Korean conglomerate GS.

GS E&C said the contract for the first phase of the Northeast Asia LNG hub terminal is worth 600 billion won.

The firm said at the time it expects construction to take about 42 months.

GS and SK E&S operate the Boryeong LNG facility, while state-owned Kogas owns the large terminals in Incheon, Pyeongtaek, Tongyeong, and Samcheok, and the small-scale regasification terminal at the Aewol port on Jeju island.

Kogas is also building a large LNG import facility in the western port city of Dangjin.