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VLADIVOSTOK, Russia, Sept. 3 (Reuters) – Japanese and Chinese banks may provide more funds for Russia’s Arctic LNG 2 project due to lack of support from European governments, said Leonid Mikhelson, head of the project’s largest shareholder, Novatek (NVTK.MM) said Friday.
Novatek shareholders in Russia this year approved $ 11 billion in external financing for the Arctic LNG 2 project, which is expected to start production of liquefied natural gas (LNG) in 2023. A document viewed by Reuters last year has indicated that this could include around $ 1 billion from France and Germany.
In May, a group of mostly green lawmakers in the European Parliament urged leaders in Germany, France and Italy not to support the project due to concerns about climate change. Read more
“We have (European) partners in place, while we do not see support from the governments of these partners,” he said. “We have lines of credit open for one third of the total funding of Russian banks. We can increase it from one third to 60%.”
Chinese and Japanese banks could provide the rest of the funding, Mikhelson added.
Mikhelson also said Russian-made equipment designed for the fourth line at the existing Yamal LNG plant was not performing well due to technology failures.
Novatek announced the launch of the range earlier in June, saying it still needs some tweaking.
The company also decided to reconfigure its Obsky LNG project to produce ammonia, hydrogen and methanol. read more Mikhelson said Novatek may invite Japanese and European companies to participate in the project.
Reporting by Vladimir Soldatkin Editing by Mark Potter
Our Standards: Thomson Reuters Trust Principles.
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