Chinese banks agree to lend Yamal LNG JV 50% of plant construction costs

Yamal LNG: Chinese banks have signed an agreement to extend $13.5bn of credit towards the construction of a 16.5m capacity LNG processing plant at the South Tambeyskoye field on Russia’s Yamal Peninsula, Total’s CFO Patrick de la Shevarde CFO told Bloomberg yesterday. The project is expected to cost a total of $27 bn and the Chinese funds – exactly 50 % of that sum  –  are expected to be available by the end of the year.
Yamal LNG is a joint venture between Russia’s Novatek (60%), France’s Total (20%) and China’s  CNPC (20%) and is due to come on stream  in 2017. The South-Tambeyskoye field was discovered in 1974 and comprises five shallow gas horizons and 37 deeper gas condensate horizons with depths varying from 900 to 2,850 meters. As of 31 December 2014, the field was estimated to contain 491bn m³  of proven natural gas reserves and 14 mmt of proven liquid hydrocarbon reserves.

Source: KP