DECP Holdings Inc.

Dominion Cove Point LNG Expansion - TL

Borrower (s)
DECP Holdings Inc.
Industry
Oil & gas/LNG
Area of finance
Project & Infrastructure Finance
Region
North America
Countries
United States

Deal Overview

Cove Point LNG is a 5.25 Mtpa LNG liquefaction, export, import and storage facility strategically located on the Chesapeake Bay in Lusby, Maryland, with direct access to gas supply basins and end-use customers. The Project entered commercial service on April 9, 2018. Cove Point was originally...

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Cove Point LNG is a 5.25 Mtpa LNG liquefaction, export, import and storage facility strategically located on the Chesapeake Bay in Lusby, Maryland, with direct access to gas supply basins and end-use customers. 

The Project entered commercial service on April 9, 2018. Cove Point was originally constructed as a regasification terminal in the late 1970s to import LNG. However, with the shale gas revolution in the US in the late 2000s, liquefaction facilities were added to the terminal to enable gas to be exported.

Key Features:

- Cove Point is owned 50% by Dominion, 25% by Brookfield Asset Management Inc., and 25% by Berkshire Hathaway Inc. Energy Company. 

- Cove Point is segmented across three primary business operations: (i) Cove Point LNG Facility (including import and storage services), (ii) Cove Point Pipeline; and (iii) the Liquefaction Project.

- Project economics are underpinned by 20-year take-or-pay terminal service agreements with ST Cove Point LLC, a joint venture between Pacific Summit Energy (51%), a subsidiary of Sumitomo Corporation and Tokyo Gas Co. Ltd. (49%), and GAIL Global (USA) LNG LLC, a U.S. affiliate of Gail (India) Limited. 

Financial Highlights:

- The Term Loan is sized such that the underlying amortization profile is co-terminous with the expiration of the ST Cove Point and GAIL TSAs. 

- MUFG served as Coordinating Lead Arranger and will commit $202.5 million at financial close across the Term Loan and LC Facility.

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Deal Volume
$ 2.61bn
Financial Close
01 December 2021
Sources
Submitted by participant(s)

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Projects

Cove Point LNG Expansion

Greenfield
LNG
North America
United States
$ 3.8bn