Yamal LNG secures $12 bln from Chinese banks

Novatek-operated giant Yamal LNG project in Russia has secured a loan from Chinese banks worth more than US$12 billion.

The project has signed agreements with the Export-Import Bank of China and the China Development Bank on two 15-year credit line facilities for the total amount of €9.3 billion (approx. US$10.58 billion) and RMB9.8 billion (approx. US$1.51 billion), according to Novatek’s statement on Friday.

Credit lines facilities have been agreed at EURIBOR 6M plus margin of 3.30 percent at the construction stage and 3.55 percent after the full commissioning of the Yamal LNG project and SHIBOR 6M plus margin of 3.30 percent at the construction stage and 3.55 percent after the full commissioning.

The latest loan, together with the financing provided by Russia’s National Welfare Fund and credit lines from the Russian banks secure the external financing of the $27 billion project.

To remind, Yamal LNG received RUB150 billion ($2.3 billion) from NWF in two tranches and recently secured a 15-year €3.6 billion ($4.1 billion) loan from Gazprombank and Sberbank.

Including the NWF funds, the shareholder financing, prior to the loans received from the Russian and Chinese banks, stood at $15 billion.

Evgeniy Kot, General Director of Yamal LNG said the 16.5 mtpa project is progressing in accordance with the approved schedule.

“With the first train of the LNG plant 65 complete we are currently at the most intensive phase of construction and assembly works. Agreements with the Chinese banks allow us to complete the project without additional funding by the shareholders,” Kot said.

It was reported in March that the first train, with the capacity to produce 5.5 million tons of LNG per year, will go online in 2017 as planned.

Shareholders in the project, besides the operator Novatek that holds a 50.1 percent stake in the project are Total and CNPC with a 20 percent stake each and China’s Silk Road Fund with a 9.9 percent stake.

LNG World News Staff