In this paper, the authors provide a detailed assessment of the factors that influence investment in gas and related infrastructure projects worldwide with a focus on the Eastern Mediterranean. They examine the relative merits of project finance and corporate finance for the development of offshore gas resources and for bringing the gas to market. In this analysis, they draw lessons from experience around the world and from the track record of the companies involved in exploration and production in the Eastern Mediterranean. The authors explain the respective roles of the public and private sectors in financing gas projects and look at company strategies to make use of both sources of finance. They provide a detailed analysis of EU and other public financial instruments that can be mobilized for offshore gas projects in the Eastern Mediterranean. Their paper concludes with a number of recommendations to governments and economic operators on the principles that should govern their financing strategies in the Eastern Mediterranean. The paper clarifies the complex issues involved in decisions concerning the financing of offshore gas projects and will be of value to those in the industry, financial institutions, government, and the wider policy community.

The German Marshall Fund of the United States | 

FOREIGN AND SECURITY POLICY PAPER SERIES | July 2015

Anastasios Giamouridis |  Nikos Tsafos

Preface
In this paper, Tassos Giamouridis and Nikos Tsafos provide a detailed assessment of the  factors that influence investment in gas and  related infrastructure projects worldwide with a focus on the Eastern Mediterranean. They examine the relative merits of project finance and corporate finance for the development of offshore gas resources and for bringing the gas to market. In this analysis, they draw lessons from experience around the world and from the track record of the companies involved in exploration and production in the Eastern Mediterranean.

The authors explain the respective roles of the public and private sectors in financing gas projects and look at company strategies to make use of both sources of finance. They provide a detailed analysis of EU and other public financial instruments that can be mobilized for offshore gas projects in the Eastern Mediterranean.

Their paper concludes with a number of recommendations to governments and economic operators on the principles that should govern their financing strategies in the Eastern Mediterranean. The paper clarifies the complex issues involved in decisions concerning the financing of offshore gas projects and will be of value to those in the industry, financial institutions, government, and the wider policy community.

Sir Michael Leigh
Senior Fellow
German Marshall Fund of the United States

Download to the pdf document: Giamouridis_Tsafos_GasFinance_Jun15_web_0

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