Novatek secures Yamal LNG financing

MOSCOW, May 2, 2016 – Novatek has secured more than USD 12 billion in loans for the USD 27-billion Yamal LNG project in northern Russia, media reported on Monday. The company secured USD 10.58 billion from the Export–Import Bank of China and a USD 1.5-billion loan from the China Development Bank.

“[These] Agreements with the Chinese banks allow [us] to complete the project without additional funding by the shareholders,” Evgeniy Kot, Yamal LNG’s general director, said. The credit facility with the Export-Import Bank of China will run for a period of 15 years.
In March, China’s Silk Road Fund acquired a 9.9% stake in the venture, helping Yamal LNG and Novatek mitigate some of the pressures related to Western sanctions. The deal was first announced in September 2015.

For more news and features about the oil and gas industry in Russia, click here.

Image credit Novatek

Read our latest insights on: