VEB.RF finances construction of Baltic LNG in Ust-Luga
RusKhimAlyans obtains the first credit
VEB.RF and RusKhimAlyans (the project operator of the integrated complex for natural gas processing and liquefaction; the company was established on a parity basis by Gazprom and RusGazDobycha) signed a loan agreement to finance the initial phase of the project on construction of Russia’s largest gas chemicals facility next to the seaport of Ust-Luga (Leningrad Region) including a plant for annual processing of 45 billion cubic meters of gas and a plant for production and shipping of 13 million tons of LNG per year, VEB.RF says in a press release.
VEB.RF’s loan of up to RUB 55 billion will be particularly used to cover expenses on development of project documentation, advance payments under license agreements and contractor agreements including those for long lead items and other expenses under the project.
According to the statement, the phase-by-phase financing is foreseen in line with the project implementation schedule.
Gazprom and RusGazDobycha are implementing the project for a natural gas processing and liquefaction complex near the settlement of Ust-Luga, with the RusKhimAlyans special-purpose company as the project operator. It is the anchor project of the major gas processing and chemical cluster that is being established in the region.
The complex will have the largest capacity in Russia in terms of gas processing and will be the largest in northwestern Europe in terms of liquefied natural gas (LNG) production (13 million tons per year). In addition to LNG, its commercial products will include ethane fraction, liquefied petroleum gases, and pentane-hexane fraction.
RusGazDobycha will be responsible for the construction of the technically affiliated gas chemical facility that will process ethane generated by the complex and produce up to 3 million tons of various polyethylene grades.
VEB.RF is a Russia’s national economic development institution. It is a state corporation established by Russian federal law. In partnership with commercial banks, VEB.RF provides financing for large-scale projects to develop the country’s infrastructure, industrial production and social sphere, strengthen its technological potential and improve quality of life. VEB.RF coordinates activities of other specific national development institutions: DOM.RF; Russian Export Center; VEB Ventures; SME Corporation; Far East and Arctic Region Development Fund; Monotowns Development Fund.
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