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Press Releases

2000-4
May 2, 2000

Overseas Economic Cooperation Operation

FINANCING PROVIDED FOR GAS PIPELINE PROJECT
UNDER THE BLACK SEA

  • 1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed a loan agreement totaling US$331.5 million with Blue Stream Pipeline Company B.V. (BSPC) to help finance a pipeline project under the Black Sea on April 28, 2000. The loan is co-financed with Fuji Bank (lead bank) and four other banks, with JBIC assuming $198.9 million, or 60% of the total amount. The remaining 40% provided by the commercial banks was covered by trade insurance from Ministry of International Trade and Industry.
  • 2. This loan will help BSPC to construct an underwater pipeline from Djubga on the Russian coast under the Black Sea to Samsun in the Republic of Turkey. The proceeds of the loan will be used to purchase deep-water steel pipes from a consortium of Japanese exporters (Mitsui & Co.Ltd., Sumitomo Corporation and Itochu Corporation.) The volume of steel pipes to be exported under this loan will roughly equal one-third of Japanユs annual production of this product, and thus will have major commercial importance for the domestic steel industry.
  • 3. The purpose of the project is to construct pipelines through which natural gas will be supplied from Western Siberia to Turkey where there has been growing demand for natural gas in recent years. The total value of export contracts for this construction project that has been obtained by the Japanese consortium, Italy, France and Russia amounts to $1.7 billion, of which $390 million goes to Japanese companies.
  • 4. This loan is also provided in cooperation with SACE, which is extending insurance cover for the orders received mainly by the Italian exporters, and the Japanese bank consortium which is providing a loan with trade insurance cover for pipelines on the land segment in Russia as another part of the project.

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