VLADIVOSTOK, September 3. /TASS/. Russian independent gas producer Novatek plans to complete its search for financing for the Arctic LNG-2 project this year, the company’s CEO Leonid Mikhelson told reporters on the sidelines of the Eastern Economic Forum.
He added that the participation of banks from Japan and China is possible.
When asked about the timing for raising financing, he said "[This will] definitely [happen] this year."
If the company fails to attract additional international financing, the share of loans from Russian banks could grow from a third to 60%, Mikhelson explained.
"The Russian banks opened credit lines for use to finance one third [of the project]. We can easily increase it from one third to 60%. Chinese banks, Japanese banks can provide the rest of the financing for the project," he added.
Mikhelson also noted that his company expected the participation of European partners.
"In France, some export credit agencies are considering [the project]," he said adding that although there are European partners, the company does not see "the support from the governments of these partners."
By the end of March 2021, the project was invested by partners and was about 39% ready. In general, the project participants approved the attraction of external financing to the tune of $11 bln for the Arctic LNG-2. It was planned that a third of this amount will be provided by Chinese banks, another third by banks in Europe and Japan, the rest by Russian banks.
About project
Arctic LNG 2 is Novatek’s second LNG project. It provides for the construction of three liquefied natural gas trains with a capacity of 6.6 mln tonnes per year for each and the production of stable gas condensate up to 1.6 mln tonnes annually. The first train is scheduled to be launched in 2023, the second and the third trains - in 2024 and 2026 respectively. The launch of the plant is based on the Gydan deposits.
Novatek (60%), Total (10%), CNPC (10%), CNOOC (10%) and a consortium of Mitsui and JOGMEC (10%) are participants in the project.
Novatek is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons.
About Eastern Economic Forum
The sixth Eastern Economic Forum is being held in Vladivostok on September 2-4 in a hybrid (combined online and in-person) format, the main topic of the business program is "New Opportunities for the Far East in a Changing World." Other programs that are part of the forum include Youth EEF, EEF Junior and Far East Street. The forum is organized by the Roscongress Foundation. TASS is the general media partner and the official photo hosting agency of the event.