VEB.RF and a consortium of commercial banks including SberBank, Gazprombank, Bank GPB International S.A. and Otkritie Bank have signed an agreement with Arctic LNG 2, LLC on providing a syndicated debt finance for implementation of the Arctic LNG 2 project, VEB.RF says in a press release.
The syndicate of banks will provide EOR 3.11 billion for 15 years to finance the construction of an LNG and stable gas condensate complex, Arctic LNG 2.
“It is the most significant initiative in the region. This project is strategically crucial for the development of the Northern Sea Route and the Arctic. VEB.RF takes part in its implementation together with commercial banks of Russia. VEB.RF earlier provide financing for construction of 15 ice-class LNG carriers intended for LNG transportation under the Arctic LNG 2 project”, said Daniil Algulyan, Deputy Chairman of VEB.RF.
“We are glad to participate in such an ambitious strategic project as Arctic LNG 2. Its financing by Sber is EUR 2 billion with a credit line opened for 15 years. Implementation of the Arctic LNG 2 will further strengthen Russia’s position in the global gas market. It is especially essential for us that the construction is based on the most advanced technologies ensuring minimization of the environmental footprint in the Arctic” comments Anatoly Popov, Deputy Chairman of the Executive Board, SberBank.
“Gazprombank continues active cooperation with the major players in the oil and gas market of Russia. Being a grantor of a credit under the Yamal LNG project we are happy to become an integral participation of another ambitious LNG project that is being implemented by NOVATEK and that is crucial for the social and economic development of the entire country”, said Aleksey Belous, Chairman of the Management Board, Gazprombank.
Victor Nikolayev, Deputy President – Chairman of the Management Board, Otkritie Bank, commented: “We have a highly positive outlook on the project and we are grateful to our partners for the trust and for the opportunity to participate. Low cost of the product, efficient financial model and strong international investors make the project unique and highly competitive. Arctic LNG 2 is a significant project for Russian economy and we, as a federal bank, are interested in its successful implementation”.
Arctic LNG 2 envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each, as well as cumulative gas condensate production capacity of 1.6 million tons per annum. The total LNG capacity of the three liquefaction trains will be 19.8 million tons.
The Project’s participants include: NOVATEK (60%), TOTAL (10%), CNPC (10%), CNOOC Limited (10%) and the Japan Arctic LNG, consortium of Mitsui & Co., Ltd. and JOGMEC (10%).