MOSCOW – The German and Swedish export credit agencies have decided to take part in the Yamal LNG project, Novatek CEO Leonid Mikhelson said during the annual general meeting of shareholders.
The decision was made “yesterday, the day before yesterday,” he said.
“Literally yesterday, the day before yesterday, the German and Swedish export credit agencies reached the relevant positive decision and they will also take part in the financing of the Yamal LNG project. Though, in principle, foreign funding for project has been fully secured, I think that the participation of Germany and Sweden is also very important politically,” he said.
Mikhelson did not disclose the extent of their participation, but said the export credit agencies would join the project in the second quarter.
Speaking to journalists Mikhelson said that the agencies will provide guarantees under which Yamal LNG expects to raise new bank loans.
The cost of the project is $27 billion. Yamal LNG has signed credit agreements for the equivalent of $12 billion with China Development Bank (CDB) and the Export and Import Bank of China (CEXIM), and the equivalent of $4 billion with Gazprombank and Sberbank.
The Japan Bank for International Cooperation (JBIC) will provide €200 million, and Italian bank Intesa Sanpaolo will provide €750 million under coverage from Italian export credit agency Sace and France’s Coface (amounting to €350 million. In addition, Yamal LNG received the equivalent of $2.4 billion from Russia’s National Welfare Fund (NWF).
The project stipulates construction of three liquefaction trains, each with capacity to produce 5.5 million tonnes of LNG a year. Startup of the first train is scheduled for 2017.
At present, Novatek has a 50.1% stake in Yamal LNG, French Total has 20%, China National Petroleum Corporation (CNPC) has 20% and Chinese Silk Road Fund has 9.9%.
