A group of domestic and international banks has granted in principle the $8.5 billion in project financing needed to finally drumroll the $20 billion Australia Pacific liquefied natural gas (LNG) project of Origin Energy Ltd. and ConocoPhillips.

In a statement released Thursday, Karen Moses, executive director of finance and strategy of Origin Energy Ltd., said the Australia Pacific LNG project was able to source loan funding from the Export-Import Bank units of the U.S. and China, as well as a 15-member group of domestic and international banks, including the big four banks of Australia.

"It represents one of the largest project finance facilities in Australia," Moses said in the statement.

The funding is still subject, however, on the decision by the owners of the Australia Pacific LNG project to push through the second phase of the project, which involved the production of a second train at the project, estimated to cost another $6 billion. A final decision is expected by middle of 2012.

The Australia Pacific LNG is controlled by US major ConocoPhillips and Australian company Origin Energy at 37.5 per cent each, while the remaining 25 per cent is owned by China Petrochemical Corp., or Sinopec Group.

The partners, in July 2011, approved the project's first phase which involved the construction of an LNG production train that will hold 4.5 million metric tonnes of LNG per year. Estimated to cost $14 billion, its first run has been scheduled in 2015.

Some $2.866 billion will be lent by the US Export-Import Bank to the Australia Pacific LNG project over 17 years while China Export-Import Bank pledged $2.759 billion. The 15-member bank syndicate committed $2.875 billion, The Australian reported.