NOVATEK Secures Loan for Yamal LNG Project
Image Courtesy: DSMERussian natural gas producer OAO NOVATEK has entered into an agreement with the country’s banks Sberbank and Gazprombank for a loan which is part of the financing package for the company’s liquefied natural gas project Yamal LNG, located in northern Russia.
The deal was signed for a 15-year credit line facility for the total amount of EUR 3.6 billion (USD 4.1 billion) at Euribor 6 month plus 4.7% annual interest rate.
“Together with the project’s shareholders, in the nearest future we plan to secure the remaining amount of the external financing required for Yamal LNG. The project is progressing in accordance with the approved schedule and we confirm our plans to launch the first train of the LNG plant in 2017,” General Director of Yamal LNG, Evgeniy Kot, said.
Earlier in 2015, the USD 30 billion Yamal LNG received financing from the National Welfare Fund of Russia in the amount of RR 150 billion (USD 2.2 billion).
The cargo from Yamal, which is based on the feedstock resources of the South-Tambeyskoye field located in the north-east of the Yamal Peninsula, would be transported via ARC7 (Russian arctic classification standards) ice class LNG carriers being built for the project.
The 170,000 cbm carriers will enable year-round navigation without icebreaker support along westbound navigation routes and along the Northern Sea route during the Arctic summer.
An LNG plant with a capacity of 16.5 million tons per annum would be constructed as part of the LNG project.
The start of LNG production is planned for 2017.
