NOGA to tap international credit market

National Oil and Gas Authority (NOGA) is looking to tap international project finance market, according to a report by Meed.com quoting its General Manager Qaisar Zaman addressing the recent Apicorp Energy Forum.

“The floating LNG terminal is ideal for BOT (build operate transfer),…the private sector can bring its superior ability to construct, finance and operate, and we will pay a tariff,” he said.

NOGA is now in the advanced stage of processing of bids received for the contract to build a liquefied natural gas (LNG) import terminal with a capacity of 400 million cubic feet a day.

He added that in the current energy price scenario government is at continued stress and NOGA looks at the private sector as an intelligent poll of capital and operational skills.

For the LNG storage terminal, the recently awarded Bapco pipeline to Saudi Arabia and Banagas gas processing plant, NOGA – the parent company – will be looking for funding from the international market, the report noted.

The website quoted Zaman “Export credit agencies are an essential ingredient in Bahrain…they can give the tenor and liquidity we need. We have larger requirements than what is available in the domestic and regional banking system.”

The report also notes that domestic banking system and even the GCC banks have limited appetite for long-tenor infrastructure projects.

More projects in the future will also be considered via private funding with the government ensuring quality and cost.