Nick Blenkey
US Ambassador to Greece George Tsunis greets Elefsina workers after the ceremony formalizing the granting of a $125 million US loan. (Photo: DFC)
The US development finance agency, Development Finance Corporation (DFC), has signed a financing agreement to provide a $125 million loan to ONEX Elefsis Shipyards and Industries (ONEX) to rehabilitate and modernize the Elefsina Shipyard (l (former Neorion Elefsis) near Athens, Greece.
The Greek government has formally approved the transfer of the shipyard, currently undergoing bankruptcy restructuring, to ONEX October 11subject to final court approval, which came on October 20. The financing of the DFC, which had would have been approved in Junewas the key to the restructuring.
This is the second turnaround of a Greek shipyard undertaken by ONEX, following the reopening of the Neorion shipyard in Syros.
LNG EXPORTS
DFC says its funding will help create a strategically critical maritime and energy supply hub for the region by increasing the shipyard’s capacity to service LNG carriers (probably including those carrying US LNG exports), promote European energy security and diversification, create new local jobs, and strengthen the U.S.-Greece partnership through transparent, high-quality investment.
“DFC’s investment in the Elefsina shipyard will develop a maritime and energy supply center that will create good local jobs here in Greece and help the country and region become less dependent on Russian energy,” he said. said Scott Nathan, CEO of DFC. “PLC is proud to advance this high-quality infrastructure project that will generate more reliable access to energy and promote increased economic growth and prosperity for our partners in the region.
Nathan joined Greek Development and Investment Minister Kostas Skrekas and US Ambassador to Greece George Tsunis at the shipyard for the signing ceremony. With DFC’s support, ONEX will increase the shipyard’s capacity to repair and upgrade vessels, particularly vessels serving the nearby Revithoussa LNG terminal. DFC says this will support increased access to reliable and secure energy in the Western Balkans and Eastern Europe by developing high-quality infrastructure to support the diversification of LNG supply for the region – an essential undertaking for amid Russia’s attempts to destabilize regional access to energy.
The Elefsina shipyard is strategically located near several key gas trade routes. ONEX will use DFC funding to transform the shipyard into an energy supply hub supporting LNG shipping lanes in the Mediterranean and Aegean seas and supporting Greece’s renewable energy goals.
