Yamal LNG to secure financing by mid-year: Total

OREANDA-NEWS. June 09, 2015. Project partners still plan to secure project financing for the 16.5mn t/yr Yamal LNG facility in Siberia by the middle of this year, Total chief executive Patrick Pouyanne said in Paris.

The Russian LNG export project remains on schedule, Pouyanne said at the World Gas Conference. Yamal LNG is expected to commission its first 5.5mn t/yr LNG train in 2017 and reach capacity of 16.5mn t/yr in 2019.

Partners do not need financing from banks and can continue to fund the project from their own projects, Pouyanne said. They plan to secure capital to develop the project by June, a year behind schedule.

Financing has faced delays after lead shareholder Novatek appeared on a US sanctions list.

"The main consequence of the sanctions is that the project will not be able to raise US dollar financing. [So basically, the financing will be delayed] (http://direct.argusmedia.com/newsandanalysis/article/939402)," chief financial officer Patrick de la Chevardiere said last year.

Overall investment in the \\$27bn project had exceeded \\$9bn by the end of May. Yamal LNG comprises Russian independent Novatek, with a 60pc stake, while Total and China's CNPC hold 20pc each.