VEB opens financing under project on construction of gas chemical facility in Ust-Luga
Baltic Chemical Complex LLC and State Development Corporation VEB.RF have signed a loan agreement with the purpose to finance the first phase of the project on creation of Russia’s largest gas chemical facility at Ust-Luga seaport in the Leningrad Region, VEB.RF says in a press release. The facility’s total capacity will be up to 3 million polyethylene per year.
The loan provided by VEB.RF will be cover the expenses on development of pre-project documentation, advance payment under license agreements and contracts including those for equipment including long lead items and other expenses for the project implementation.
Financing will be provided phase by phase as the project implementation proceeds according to the schedule. Financing of the initial phase will let considerably enhance the credit and investment quality of the project which is significant for involvement of other financial institutions of Russia and attracting international export credit agencies and banks.
Konstantin Makhov, General Director of RusGazDobycha, commented: “Creation of the largest industrial cluster is underway, there is no anything like it in Russia. Vertically integrated system of gas supply and processing in Russia is actually a new economic model for the gas industry. The product of the future facility has a potential of export to the countries of Europe, Asia, India and China. It is an ambitious project. Its first phase alone will involve more than 25,000 specialists. The launching of the first turn is scheduled for 2023-2024 with the facility to become fully operational in 2025. The complex is to generate over 5,000 permanent jobs of high qualification”.
Nikolay Tsekhomsky, First Deputy Chairman – Member of Board, VEB.RF, commented: “As of today, it is the largest project in the portfolio of VEB.RF providing for creation of a production facility with a 100% export potential. For us, as a development organization, it is important to lend a ‘financial shoulder’ for a project on creation of the world’s largest complex that will enhance the industry’s competitiveness in the international market”.
