Total of France is close to securing US$4 billion of financing for the Yamal LNG project with Russian banks, according to Total’s chief financial officer, Patrick de La Chevardiere.
The CFO noted the negotiations with Russian banks are being finalised while progress has recently also been made in negotiations with Chinese banks for over $12 billion equivalent, Reuters reports.
De La Chevardiere said that both agreements could be reached as early as this week, despite recent comments by the Novatek CEO Leonid Mikhelson that Chinese funds will not be secured during May.
Total’s CEO Patrick Pouyanne expected to close the project’s funding, estimated at $27 billion, before the end of last year, however, sanctions hindered the fundraising process.
Novatek is the operator of the project with a 50.1 percent stake while Total owns a 20 percent stake, same as CNPC with China’s Silk Road Fund owning a 9.9 percent stake.
The 16.5 mtpa facility is expected to start producing liquefied natural gas from its Train 1 during 2017.
LNG World News Staff