Baker & McKenzie acted as international legal advisors to K-Power, the project company formed by SK Corp and BP, on the $783 million project development and financing of a 1,074 megawatt liquefied natural gas (LNG) fired power plant in Kwangyang Province, South Korea. Project Finance International (PFI) named the transaction Power Deal of the Year for 2004. The gas for the project will be sourced from BP’s Tangguh project in Indonesia and the power despatched through the POSCO sub-station and subsequently onto the Korea Electric Power Co grid. It is the first merchant power project to reach financial close in the South Korean energy market, having successfully raised a $574 million debt facility through the Korea Development Bank. It is also the first Korean plant to be granted permission to import LNG. Won Lee, a Hong Kong-based partner, led the Bakers team on the deal.
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