The largest in the Arctic a project for the construction of an LNG plant, Yamal LNG project controlled by NOVATEK, will receive a loan of $400 million from Japan Bank for International Cooperation (JBIC). On Friday, September 2, at the Eastern economic forum, said the General Director of the Bank Tadashi Maeda, according to Bloomberg.
The Bank has almost finished the preparation of the agreement with the Yamal LNG project and plans to sign a strategic cooperation Memorandum with NOVATEK, said Maeda.
Launch of “Yamal LNG”, which will produce 16.5 million tons of LNG, scheduled for 2017. France’s Total and China’s CNPC own 20% project, another 9.9% of China’s silk road Fund Silk Road Fund).
The project, estimated at $27 billion fully funded: in April the Export-import Bank of China and China development Bank agreed to provide him with about $12 billion, and before that 150 billion rubles allocated from the national welfare Fund (NWF) and another €3.6 bn Sberbank and Gazprombank, with a total of about $18.4 billion of loans). The rest of financing from the shareholders.
Despite this, in early July, the CEO of Total Patrick Pouyanne said that the shareholders of “Yamal LNG” is going to attract about $2 billion for the optimum funding of the project. “The availability of additional loans will ease the investment burden on the equity of the shareholders. The best option for us initially was to attract $20 billion of funding, at the moment already has $18.4 billion”, — he said in an interview to “Kommersant”.
However, the Western banks were reluctant to provide funding for this project. Because of U.S. sanctions imposed against NOVATEK and one of its largest shareholders, Gennady Timchenko, along with other Russian companies and businessmen after the annexation of Crimea to Russia, the company is unable to raise funds in US dollars. Chinese and Russian banks had to provide the “Yamal LNG” the money is in euros and yuan.
Japan partially supported sanctions against Russia. In 2014 she was denied entry into the country a number of Russians, which Tokyo considers implicated in violation of Ukraine’s sovereignty. In addition, Japan imposed sanctions against several Russian companies and banks, including Sberbank and VTB.
US sanctions also prohibit American banks to provide funding to NOVATEK and its projects, but the Japanese JBIC, this limitation does not directly apply.
NOVATEK is planning another LNG project on the Yamal Arctic LNG-2, which will be launched in 2022. But the company is not in a hurry to find partners for this project, said Friday the Chairman of the Board of NOVATEK Leonid Mikhelson, reports Bloomberg.
JBIC will consider the possibility of investing in Arctic LNG 2″ only after will provide funds to Yamal LNG,” added Maeda.