Russia’s largest independent gas producer Novatek, which is operating the Yamal LNG project, is looking to secure funds from global export credit agencies in the amount of $5 billion.
According to the company’s CEO Leonid Mikhelson, the funds should be secured by mid-year, Reuters reports.
Patrick Pouyanne, CEO of Novatek’s partner in the Arctic LNG project, Total, said that talks are ongoing with Chinese institutions for $10 to $15 billion. Pouyanne added that the sanctions on Russia have slowed down the funds procurement and that the financing for the $27 billion Yamal LNG development would have been completed by now if not for sanctions.
Novatek already received 75 billion roubles ($1.4 bln) from Russia’s National Wealth Fund and will receive the second part of the 150 billion roubles by the end of this quarter. According to Michelson, the company has been engaged in talks to sell 9% interest stake in the project to Asia-based companies before securing the funds.
Novatek owns a 60% stake in the project while Total and China’s CNPC each hold a 20% stake.
The production from the 16.5 mtpa project is scheduled to start in 2017.