Arctic LNG-2 to Attract Loans Worth 9.2bn Euros


For the Arctic LNG-2 project, NOVATEK will attract loans worth more than 9.2 billion euros, the company reported in its financial statements, Russian media writes.

The “Arctic LNG-2” company signed a deal back in April 2021, with a syndicate of Russian banks. Those banks are VEB, Sberbank, Gazprombank, and Otkritie Bank, obliging to provide a credit line of 3.11 billion euros for 15 years.

The cost of the Arctic LNG-2 project is estimated at $21.3 billion, while external financing will amount to $11 billion, 30% of which will be provided by financial institutions from Russia, China, Japan, and Europe.

The Arctic LNG-2 project envisages the construction of three stages for the production of liquefied natural gas (LNG) with a capacity of 6.6 million tons of LNG per year each.

NOVATEK has 60 percent in the project, while Total, Chinese CNPC, and CNOOC, Japan Arctic LNG (a consortium of Mitsui and the Japanese National Corporation for Oil, Gas and Metals, JOGMEC) – have 10 percent each.

The first phase of Arctic LNG-2 will be launched in 2023, the second in 2024, and the third in 2026.