Sberbank OKs $3.6 billion financing for Novatek’s Arctic LNG 2 project

Russia’s Sberbank will reportedly provide up to 3 billion euros ($3.64 billion) in financing for the Novatek-led Arctic LNG 2 project.

Sberbank’s deputy head, Anatoly Popov said on Thursday the bank decided to approve the financing in December last year, according to several reports by local media.

This is not the first time for the bank to support Novatek’s projects as it already provided a loan of 2.7 billion euros for the Yamal LNG project in the Arctic.

Novatek’s Arctic LNG 2 located on the Gydan peninsula includes the construction of three trains with a capacity of 6.6 mtpa, each, using gravity-based structure platforms.

Moreover, the Russian producer expects to launch the first LNG train in 2023, with LNG trains 2 and 3 to follow in 2024 and 2026, respectively.

According to Novatek, Capital expenditures to launch the project at full capacity will reach about $21.3 billion.

Novatek is the project operator with a 60 percent stake, France’s Total 10 owns percent while CNPC and CNOOC of China have 10 percent, each.

Japan Arctic LNG, a consortium of Mitsui & Co and Jogmec owns a 10 percent stake in the project as well.

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