Sber to provide €2 billion in financing for Arctic LNG 2

Apr 29, 2021

Sber has signed a loan agreement on the provision of a syndicated credit line to Arctic LNG 2, which is carrying out a project to build capacity for liquefied natural gas production. In addition to Sber, Gazprombank, Bank GPB International S.A. (Gazprombank Group), national development institution VEB.RF, and Otkritie Bank are also co-financing the project. The EUR 3.11 bn line of credit has been granted for a period of 15 years.

We are pleased to take part in a large-scale and strategic project like Arctic LNG 2. Sber is contributing EUR 2 bn and the line of credit is open for 15 years. The implementation of the Arctic LNG 2 project will further strengthen Russia’s position on the world gas market. It is especially important to us that state-of-the-art technologies be used during the construction process to help minimize the environmental impact on the Russian Arctic.

Anatoly Popov

Deputy Chairman of the Executive Board, Sberbank

This is a critical initiative for the region and this project is of strategic importance for the development of the Northern Sea Route and Arctic exploration. VEB.RF is engaged in this project together with Russian commercial banks and previously provided funding for the construction of 15 ice-class gas tankers that will be used to transport liquefied natural gas for the Arctic LNG 2 project.

Daniil Algulyan

Deputy Chairman, Member of the Management Board, VEB.RF

Gazprombank continues to actively work together with major players on the national oil and gas market. As a lender for the Yamal LNG project, we are pleased to become an integral part of Novatek’s second LNG megaproject. This project is important for the socioeconomic development of the entire country and I am certain that consolidating the efforts of experienced international-level financial partners will guarantee the required funding, which will allow the project to maintain the fast pace of the construction schedule.

Alexey Belous

Deputy Chairman of the Management Board, Gazprombank

We impressed by this project’s potential and are grateful to our partners for their trust and the opportunity to participate. The project’s low production costs, effective financial model, and strong international investors make it unique and truly competitive. Arctic LNG 2 is an important project for the Russian economy. As a national bank, we are invested in its successful completion.

Viktor Nikolaev

Deputy President–Chairman of the Management Board, Otkritie

OOO Arctic LNG 2 is implementing a project to construct three LNG trains with a capacity of 6.6 million tons per annum (mtpa) each, a total LNG capacity of 19.8 mtpa, and up to 1.6 mtpa of stable gas condensate per annum. The project is based on an innovative construction concept that uses gravity-based structures (GBS) in order to reduce capital expenditure and minimize the environmental impact on the Russian Arctic. As of December 31, 2020, the proven and probable reserves of the Utrenneye field under PRMS standards amounted to 1,434 billion cubic meters of natural gas and 90 million tons of liquids.

The project’s participants include: NOVATEK (60%), Total (10%), CNPC (10%), CNOOC (10%), and the Japan Arctic LNG consortium of Mitsui & Co., Ltd. and JOGMEC (10%).