Arctic LNG-2 secures €9.5 billion from banks

Moscow, December 1 - Neftegaz.RU. The Arctic LNG-2 consortium developing a 20 mln metric ton/year liquefaction plant in the Russian Arctic has secured some €9.5 billion ($10.8 billion) in external funding from domestic and international financiers, NGW reported.

The consortium led by Russian gas producer Novatek said that the 15-year facility meant the project's required external financing was now in place.
Chinese lenders including the China Development Bank and the Export-Import Bank of China have pledged up to €2.5 billion, while institutions from OECD countries including Japan Bank for International Cooperation (JBIC) will contribute up to a further €2.5 billion.

This adds to €4.5 billion already promised by Russian lenders including Gazprombank, VEB.RF and Bank Otkritie.

Novatek and its partners took a final investment decision on Arctic LNG-2 back in 2019, confident that the project would be realised even though not all external financing was in place at that time.
The Russian company completed its 1^st Arctic LNG plant, Yamal LNG, 2 years earlier, ahead of schedule and under-budget.

The involvement of Chinese and Japanese lenders was expected, as Chinese oil firms CNPC and CNOOC each have a 10% stake in the project, while a joint venture between Japan's Mitsui and JOGMEC controls a further 10%.

Novatek operates the project with a 60% interest, while France's TotalEnergies has a further 10%.
The 1^st of Arctic LNG-2's 3 trains is due on stream in 2023.