International Lenders Are Ready To Finance Russia's Arctic LNG 2 For $9.5 Billion
International lenders have prepared about $9.5 billion in financing for the Arctic LNG 2 project, Reuters reported, citing a document related to the financing.
In particular, the French state investment Bank Bpifrance offers to provide credit financing for the project for $700 million, China Development Bank can offer $5 billion, and the German Euler Hermes — another $300 million.
It is also expected that the Japanese Bank for international cooperation (JBIC) will provide funds for $2.5 billion. Also, the participation of the Italian state export credit agency SACE is expected, which plans to allocate $1 billion for the project. Besides, an unnamed Russian Bank may provide another $1.5 billion to finance the project.
Earlier in September, Deputy Chairman of the Board of Sberbank Anatoly Popov said that the Bank is interested in financing Arctic LNG 2, investments may exceed 2.7 billion euros, and a decision on the project will be made before the end of the year.
"The scheme described in the document, with full support, will cover the need for external financing of the project, previously estimated by NOVATEK at $9-11 billion," the agency writes.
Arctic LNG 2 is NOVATEK's second large-capacity LNG project after Yamal LNG. The resource base is the Morning field in the Yamal-Nenets Autonomous district. The project plans to build three production lines with a capacity of 6.6 million tons each (19.8 million tons of LNG per year). The shareholders are NOVATEK (60%), France's Total (10%), China's CNOOC (10%), China's CNPC — CNODC (10%), and a consortium of Japan's Mitsui & Co and JOGMEC — Japan Arctic LNG (10%).