NOVATEK, CNPC and Chinese banks ink memorandum on Yamal LNG project financing

OAO NOVATEK, China National Petroleum Corporation (CNPC) and a consortium of Chinese financial institutions today, September 10, concluded a Memorandum on financing of the Yamal LNG project, NOVATEK said Tuesday in a media release.

According to the memorandum, the Chinese commercial banks – China Development Bank Corporation, Industrial and Commercial Bank of China, Bank of China and China Construction Bank, – will consider actively participating in the external project financing transaction of Yamal LNG project.

Final documentation with the Chinese commercial banks will be executed simultaneously with all of the other lenders participating in project financing of Yamal LNG, including, but not limited to, foreign export credit agencies, international and Russian commercial banks and other financial institutions.

Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2012 were appraised at 907 billion cubic meters of natural gas. The Project also requires the construction of transport infrastructure including a sea port and an airport located at Sabetta (north-east of the Yamal Peninsula).