How Do Direct Agreements Provide Additional Security for Lenders in Natural Gas Pipeline Project Financings in the Operating Period?
Article from: OGEL 3 (2011), in Pipelines
Abstract
This article discusses the question of why direct agreements are an essential part of the security package of a natural gas pipeline project and especially important tool for the operating period. Project assets are usually spread out in various jurisdictions (or located in international waters) and they may be of limited intrinsic value. Project agreements are the most valuable asset that the project has. A pipeline is not valuable in the same way as other projects (e.g., a petrochemical plant). That is the reason why the role of direct agreements is emphasized in natural gas pipeline ...