Arctic LNG-2 Lines up $9.5bn in International Funding: Press

The Arctic LNG-2 project in Russia has lined up $9.5bn in financial support from a group of international lenders, Reuters reported on September 18 citing a document it had seen. Russian state entities are to provide additional funding.

A final investment decision on the $21bn Arctic export project led by Russia's Novatek and France's Total was taken in September last year. Construction is well underway and production is due to start in 2023 and climb to 19.8mn metric tons/yr by 2026. Arctic LNG-2 other equity partners are China's CNPC and Cnooc and Japan's Mitsui and Jogmec.

According to Reuters, China Development Bank is expected to offer a $5bn credit facility, while French state investment bank Bpifrance is set to offer $700mn and Germany's Euler Hermes $300mn. The Japan Bank for International Cooperation is expected to provide $2.5bn and Italy's Sace $1bn.

Russia's state-owned Sberbank earlier said it would provide over €2.7bn ($3.2bn), and according to the document, an unnamed Russian bank will potentially provide $1.5bn. Earlier Novatek said the project would need $9-11bn in external financing.

As of press time, none of the financiers or project partners have confirmed the Reuters report.