Russia's Yamal LNG Gets First $1B Tranche From Russian Banks

Reuters

MOSCOW, June 10 (Reuters) - Russia's Novatek-led Yamal liquefied natural gas (LNG) project said on Friday it had received its first financing tranche of 1 billion Euros ($1.13 billion) from Russia's Sberbank and Gazprombank.

Under the agreement, signed in April, the two banks will supply Yamal LNG with loans worth a total 3.6 billion Euros.

The first tranche would help the $27 billion project start producing liquefied gas next year, as planned, the firm said in statement.

Three LNG production lines are envisaged, each with an annual capacity of 5.5 million tons. All output will be exported.

The first LNG train is more than 70 percent complete, Yevgeny Kot, director general of Yamal LNG, said in the same statement.

Yamal said its total external financing was equivalent to $18.4 billion. That included loans to be provided by Chinese banks worth over $12 billion.

The project has already secured Russian state funds worth 150 billion roubles ($2.31 billion) from a rainy day fund.

(Reporting by Denis Pinchuk; Editing by Andrew Osborn)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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