ALTERNATIVE FUELS GREENPORT

Yamal LNG project finance

13 years ago

Russian independent gas provider, OAO Novatek, has received financial backing from China National Petroleum Corporation (CNPC) and a consortium of Chinese financial institutions for its Yamal LNG project.

Chinese commercial banks, China Development Bank Corporation, Industrial and Commercial Bank of China, Bank of China and China Construction Bank signed a memorandum of understanding last week to consider financing the project.

This comes after CNPC agreed to purchase a 20% equity share in the Russian LNG project.

Novatek holds an 80% equity stake and the license for exploration and production at the South-Tambeyskoye field valid until 2045.

Yamal LNG is expected to have a capacity of 16.5m tonnes per annum based on the feedstock resources of the field. The proven and probably reserves of the South-Tambeyskoye field stood at 907bn cubic metres of natural gas as of 31 December 2012.

The project also requires the construction of transport infrastructure including a sea port and an airport at Sabetta in the Yamal Peninsula.

Back in July, sister publication The Motorship, reorted that Daewoo Shipbuilding and Marine Engineering (DSME) won the tender to build up to 16 ARC7 ice-class tankers for the shipment of the LNG from the field.