VEB’s participation in loan for Arctic LNG-2 – 400 mln euros

TASS Russian News Agency | May 4, 2021 at 9:10 AM

MOSCOW, May 4. / TASS /. The volume of participation of VEB.RF in a syndicated loan for the construction of the Novatek complex for the production of liquefied natural gas and stable gas condensate Arctic LNG - 2 is 400 million euros, VEB.RF Deputy Chairman and Board Member Daniil Algulyan told TASS on Tuesday

"In total, the syndicate of banks will provide the Arctic LNG-2 company with 3.11 bln euros for a period of 15 years to finance the construction of the Arctic LNG-2 complex for the production of liquefied natural gas and stable gas condensate. The approved volume of VEB.RF's participation is 400 mln euros," he said. According to him, the first tranche under the syndicated loan has already been wired to the initiator of the project.

"The Arctic LNG-2 project makes an important contribution to the development of the Arctic, the Northern Sea Route, the strengthening of Russia's position in the international LNG market, the development of domestic shipbuilding. Arctic LNG-2 is a reference example of international cooperation," Algulyan added. He also recalled that earlier VEB.RF had already opened financing for the construction of 15 ice-class LNG carriers, which will be used to transport LNG of the Arctic LNG-2 project; their construction is already underway at the Zvezda shipyard.

On April 28, 2021 it became known that VEB.RF together with a consortium of banks - Sberbank, Gazprombank, GPB International S.A. and Otkritie Bank will provide a syndicated loan for the construction of Arctic LNG - 2 for a total amount of 3.11 bln euros for a period of 15 years. At the same time, it was reported that the volume of Sberbank's participation in the syndicated loan was 2 bln euros. Another 400 mln euros is part of the Gazprombank group (Gazprombank itself and GPB International S.A.).

Arctic LNG 2 is the second Novatek LNG project. In addition to the Russian company, Chinese CNOOC and CNPC, French Total and a consortium of Japanese companies Mitsui and Jogmec own 10% in the project each. The total capacity of the three production lines of the plant will be 19.8 mln tonnes of liquefied natural gas per year, the launch of the first line is planned in 2023, the second and third lines in 2024 and 2026, respectively. Capital investments to launch the project at full capacity are estimated at $21.3 bln.


Latest Finance News: