Financing LNG infrastructure in EU
Ensuring the cohesion in the current European transport infrastructure is one of the main objectives of 2030 EU transport policy. Financing the building of a unified Trans-European Transport Network (TEN-T) consisting of core network corridors is an objective that attracts significant attention. With the construction of LNG infrastructure in core maritime ports being a major part of it, EU is dedicating the Connecting Europe Facility (CEF) policy to the financing of priority gas corridors. In the period 2014-2020 the financing for transport infrastructure is estimated to reach EUR 26 billion.
Private Public Partnerships (PPP) for Infrastructure Projects
In the case of ports and Transportation sector in general, due to the nature of their ownership or administration and the constraints in public budgets for mobilizing infrastructure projects, a mcommon practice is the establishment of PPPs. PPPs have a key role in improving Europe's infrastructure. They represent long-term contracts between private and governmental parties, for providing a public asset or service, in which the private party bears significant risk and management responsibility. For the financing of PPP projects, project finance arrangements are used, including debt and equity instruments. The analysis of implemented PPP infrastructure projects illustrates the funding is structured by aroung 40% from State and EC contribution, around 45-50% of funds is EIB and Commercial Banks contribution, while the remaining araound 10-15% is private equity.
Realization of LNG Terminals in EU Ports (indicative cases)
| 2012 - | Port of Brofjorden receives a EUR 23.1 million TEN-T funding for covering part of the construction of LNG bunkering infrastructure |
| 2014 - | Ports of Rotterdam and Gothenburg receive a EUR 34.3 million TEN-T funding for covering part of the construction of two LNG terminals |
| 2015 - | Ports of Helsingborg and Klaipeda receive a EUR 10.2 million TEN-T funding for covering part of the construction of LNG related infrastructure |
| 2015 - | Ports of Koper, La Spezia, Venezia, Fos-Marseille and Nantes-Saint Nazaire receive a EUR 19.2 million TEN-T funding for covering part of the construction of LNG bunkering infrastructure |
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