Regional LNG: China banks to provide $880M loan for Guangdong LNG terminal

Five state-run banks signed Friday a loan agreement to finance the $880 million construction of China's first liquefied natural gas terminal in the southern province of Guangdong, Dow Jones newswires quoted a statement from a lawyers advising on the deal.

Bank of China, Industrial & Commercial Bank of China, Agricultural Bank of China, China Construction Bank and China Development Bank signed agreements for the Guangdong LNG Terminal & Trunkline Project, White & Case LLP said in the statement on Friday.

"With ABN Amro serving as a financial adviser, the Chinese banks are providing financing to the $880 million Guangdong LNG project for the development of a 3 million metric ton LNG receiving, storage and regasification terminal and a 213 kilometer pipeline for gas distribution," the statement said.

Developed by BP Plc (BP) and state-run China National Offshore Oil Corp., the project will provide gas to cities in Guangdong province and neighboring Hong Kong. (*)