29 Nov 2021 14:57

Novak: Chinese banks expected to sign Arctic LNG 2 financing agreement shortly

MOSCOW. Nov 29 (Interfax) - Chinese banks are expected to sign agreements on financing for the Arctic LNG 2 project in the near future, Russian Deputy Prime Minister Alexander Novak said on Monday during the Russian-Chinese Energy Forum.

The Arctic LNG 2 project envisages constructing three trains for liquefied natural gas production, with capacity of 6.6 million tonnes of LNG each, using gravity-based structures. Novatek owns 60% of the project. France's Total, China's CNPC and CNOOC, and Japan Arctic LNG B.V., a consortium of Mitsui & Co. and Japan's Oil, Gas and Metals National Corporation, JOGMEC, each hold 10% stakes in the project. The first train should be launched in 2023, followed by the second in 2024 and the third in 2026.

The total amount of external financing for the Arctic LNG 2, valued at $21.3 billion, is planned at about 9.2 billion euros. Plans call for 30% each to be provided by financial institutions from Russia, China, Japan and Europe.