Novatek, Russia’s largest LNG producer, plans to raise 11 billion U.S. dollars to operate in the Arctic region and plans to provide a 60% stake in the project as a security deposit for long-term financing.
Novatek hopes to raise funds for Arctic LNG 2 in the first half of this year.
The project is worth 21 billion U.S. dollars, and the company obtained the final investment permit in 2019. It is planned to start production in 2023 and will reach full capacity production of nearly 20 million tons per year by 2026.
According to the project’s website, the “resource base” will be an area on the Jidan Peninsula in western Siberia.
Novatek’s partners in this project are France’s Total, China’s National Petroleum and CNOOC, and a Japanese consortium composed of Mitsui & Co. and Japan’s state-owned national oil, gas and metal companies. (JOGMEC).
Russia’s Sberbank announced in January that it had approved up to 3 billion euros to fund the Arctic LNG 2 project.