Alternative methods and costs of financing gas development projects

Patrice De Vallée

Energy, 1985, vol. 10, issue 2, 181-185

Abstract: Gas development projects are generally very capital intensive. Often they are financed with high debt-equity ratios. Thus, both the type of debt structure and its cost become important questions for project sponsors. A wide variety of debt instruments exists, including bonds and Eurocurrency loans. This article concentrates on private rather than public sector lending institutions and explains how bankers evaluate project proposals brought to them. The assessment of project risks involves careful examination of feasibility studies submitted by the sponsors. Sponsors are therefore urged to bear in mind the banker's perspective when preparing loan applications and feasibility studies. Above all, improved communications between project sponsors and lending institutions are necessary.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:10:y:1985:i:2:p:181-185

DOI: 10.1016/0360-5442(85)90082-9

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