Monday, 25 October 2021 03:43 GMT

Investment in Russian Arctic LNG 2 plant to come to USD6 billion in 2021

(MENAFN) Novatek’s deputy chairman of the management board, Mark Gyetvay stated that the Russian Arctic LNG 2 project is expected to receive 50 percent more investment in 2021 than in last year.

The top manager stated in a symposium call stated, as cited by TASS: “we spent about $4 billion in 2020 and estimate that capital expenditure requirements this year will be around $6 billion, as construction intensifies to meet planned launch dates.”

Gyetvay corroborated that the liquified natural gas (LNG) project was nearly 40 percent complete as of the end of March. He noted that the firm keeps its plans to start the first of three suggested production lines in 2023.

Novatek stated that the participants have endorsed USD11 billion worth of external funding for the plant. A third of the amount will be offered by banks in China, another third by European banks and Japan and the rest by Russian banks. On Wednesday VEB.RF, together with a consortium of Russian banks, declared a 15-year loan reaching €3.11 billion (USD3.7 billion).

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