On 2 July 2015, the two government entities Export-Import Bank (Eximbank) of Korea and Korea Trade Insurance Corporation (K-Sure) announced providing USD 1 billion and USD 750 million, respectively, in project financing for the Sabine Pass LNG Plant Extension Project Phase. Notably, K-Sure and Eximbank of Korea have previously provided 1.5 billion in project financing in 2013, see related measure. Notably, K-Sure and Eximbank of Korea have previously provided 1.5 billion in project financing in 2013, see related measure.
Initially, the Sabine Pass project involved constructing and operating an LNG terminal located in the Gulf of Mexico in the State of Louisiana, United States. This extension project involves the construction of a fifth train in the LNG terminal. Korea Gas Corporation is a participant in the project and will from 2017 be able to purchase the LNG produced from 2017 and 20 years forward.
Additionally, the Korean commercial banks: Kookmin Bank, Nonghyup Bank, Shinhan Bank, Korea Exchange Bank, Woori Bank, Hana Bank and Korea Development Bank as well as the Korean securities company: NH Investment and Securities are participating in the project through the Eximbank of Korea and K-Sure's provision of loan guarantees.
 
Export Loans and Guarantees
The Eximbank of Korea provides various financial instruments on favourable terms to support specific Korean companies' business activities abroad. The terms and conditions vary depending on the loan or guarantees' purpose. More information on such loans and guarantees can be found on the Bank's website under Official Export Credit as well as under export related loans / guarantees.
 
Project finance
Project financing loans include preferential terms such as repayments being mainly made from the project's cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question. The Eximbank of Korea in this context noted: 'sponsors are thus shielded from the risk of project failure'.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.