Origin in Loan Talks With US Bank for LNG Expansion

Origin Energy is close to securing a $2.95 billion loan from the US government's Export-Import Bank, which could provide funding for the $6 billion Australia Pacific LNG plant at Gladstone, according to a report by The Australian.

The company is also on the verge of closing deals with China Ex-Im Bank and commercial lenders for project financing.

The loan would not only represent cheap funding for the expansion but also take significant pressure off Origin's need to raise equity for the expansion to go ahead.

Origin confirmed the nature of the talks but said nothing had been finalised.

"While negotiations are progressing well, no agreement regarding project finance for the Australia Pacific LNG project has been reached," an Origin spokeswoman said, according to The Australian.