Russia’s Arctic LNG 2 Secures Financing, Clearing Path to Completion

PAO Novatek said this week that the 19.8 million metric tons/year (mmty) Arctic LNG 2 project in Russia’s Far North signed loan agreements with a consortium of international banks, securing all the facility’s external funding.

The banks agreed to provide $10.8 billion for up to 15 years for the $21 billion project that is to be located north of Siberia.

The China Development Bank and the Export-Import Bank of China signed credit facility agreements for $2.8 billion, while institutions from the Organization for Economic Cooperation and Development, including the Japan Bank for International Cooperation, agreed to provide the same amount of funding. A syndicate of Russian banks also signed on to provide $5 billion. Other lenders were not disclosed. 

Novatek, Russia’s...