Belgian owner Exmar has revealed the coronavirus has temporarily halted a $40m loan release for its Tango FLNG unit.
The outbreak of Covid-19 has meant conditions could not be fulfilled for the transfer of the cash by Bank of China under the debt service reserve account for the vessel.
"These conditions precedent are merely administrative points that cannot be solved until the offices from the Chinese authorities officially re-open," it added.
Developments are being closely followed, Nicolas Saverys-led Exmar said.
The company said in January that the lender had approved the release of the $40m under the loan facility.
The unit, under contract with Argentina-based YPF, exported its second cargo in December and the third is being produced.
Gunvor case holds up FSRU financing
Last year, trader Gunvor started arbitration in a row over an Exmar FSRU charter.
Exmar has now said that because of this, the financing of the unit could not be completed.
It has managed to secure another extension of $30m in bridge loans until the end of this month. Certain other capital expenditure has been delayed until mid-March.
The row seems to centre on Exmar's 25,000-cbm S188 (built 2017), listed as laid-up by Clarksons.
Last year, Exmar said the refinancing of the FSRU under a sale and leaseback deal with China's CSSC had been signed, but not executed yet pending the security documentation requiring the charterer’s signature.
Exmar said Gunvor, which had a 10-year charter in place for an Exmar barge-based FSRU for use in Bangladesh, had "raised some legal arguments."
Bangladesh placed the deal in doubt in 2018 when it decided to focus on larger gas projects.
