OREANDA-NEWS. The 16.5mn t/yr Yamal LNG export project in Russia's far north has secured over $12bn in loans from Chinese state-run banks —the final element in its $27bn project financing package.

Export-Import Bank of China and the China Development Bank have signed 15-year credit lines for $10.58bn and $1.51bn, respectively, the project operator, Russian independent gas firm Novatek, said today.

"The agreements with the Chinese banks together with [financing from Russia's] National Wealth Fund and credit lines from the Russian banks, secure the required amount of external funding for the project," Yamal LNG said.

The project received 150bn roubles ($2.3bn) from the National Wealth Fund last year and recently signed a loan agreement with Russia's Sberbank and Gazprombank for $4.11bn.

Yamal LNG plans to commission its first 5.5mn t/yr LNG train in late 2017, the second in 2018 and the third in 2019. Novatek owns 50.1pc of the project, while France's Total and Chinese state-owned CNPC hold 20pc each, and China's state-owned Silk Road Fund has 9.9pc.

"The first train is 65pc complete… we are at the most intensive phase of construction and assembly. Agreements with the Chinese banks allow us to complete the project without additional funding by shareholders," Yamal LNG general director Evgeniy Kot said.

Yamal LNG was given the go-ahead in late 2013 and the consortium aimed to secure financing by mid-2014, but US and EU sanctions against Novatek have held up the process.

Commercial contracts for 95pc of Yamal LNG's production have been signed, mainly with buyers in Asia-Pacific, using an oil-linked formula, and a small portion with European customers, Total chief financial officer Patrick de la Chevardiere said earlier this week.