The shareholders of Novatek have approved $19bn external financing to be raised for construction of Yamal LNG plant in Russia.
So far, Yamal LNG has concluded loan agreements related to financing from the National Welfare Fund of Russia, as well as project financing agreements with Sberbank, Gazprombank, Export-Import Bank of China and the China Development Bank for $18.4bn.
Out of the total amount, more than $4bn has already been withdrawn.
The Yamal LNG project is involved in the construction of the natural gas liquefaction plant on the base of the hydrocarbon resources of the South-Tambeyskoye field.
The plant will have a capacity of 16.5 million tonnes per year and first LNG production is scheduled for next year.
Earlier this month, Yamal LNG withdrew the first tranche of financing amounting €1bn provided by Sberbank and Gazprombank under a loan agreement signed in April this year.
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By GlobalDataThis financing from the Russian banks is part of the $18.4bn project finance package, which also includes financing from the National Welfare Fund of Russia and a consortium of Chinese banks.
The first LNG train of the project is more than 70% complete.
The company also recently finalised the hydro-testing of the first cryogenic LNG tank, and the largest modules for the first LNG train have been shipped from the module fabrication yards.
Novatek owns a 50.1% stake in Yamal LNG, while CNPC and Total have 20% each, and Silk Road Fund has a 9.9% share.
Image: The Yamal LNG project is involved in the construction of the natural gas liquefaction plant. Photo: courtesy of Novatek.
