International finance providers were thought to have raised about $9.5 bill for
NOVATEK’s Russian Arctic LNG project, Arctic LNG 2, a document seen by Reuters said.
The $21 bill project, which received FID approval a year ago, is expected to be onstream in 2023 and to reach its full capacity of almost 20 mill tonnes per year in 2026.
Among the overseas lenders listed is French state investment bank and export credit agency Bpifrance, with an offer of $700 mill in credit finance; the China Development Bank, expected to offer a facility worth $5 bill and Germany’s Euler Hermes, with a covered facility of $300 mill, the document said.
It was also revealed that a number of other state-backed institutions had also expressed interest in helping to fund the project, including the China Development Bank.
The Japan Bank for International Co-operation will also provide a facility of $2.5 bill; an unnamed Russian bank $1.5 bill and Italy’s SACE, a covered facility of $1 bill.
Russian lender Sberbank had earlier said it was ready to pump in more than €2.7 bill in financing for the project.
Arctic LNG 2 is being planned to process gas from the Gydan Peninsula and ship 80% of the LNG produced to Asia.
The project’s equity partners include Total, China National Petroleum Corp, CNOOC and the Japan Arctic LNG consortium involving Mitsui & Co and state-owned JOGMEC, formally known as Japan Oil, Gas and Metals National Corp.
In addition, NOVATEK announced that after fulfilling all the conditions stipulated by Yamal LNG’s external bank financing, the debt service guarantees were removed.
“We have reached another significant milestone on Yamal LNG with the removal of the guarantees relating to the project’s financing.” said Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “The removal of the guarantees will allow NOVATEK to attract external financing for its new projects on more favourable terms, and equally important, removes the restrictions on our dividend payout ratio.”
It has also been reported that NOVATEK has secured a €522 mill loan with a period of 16 years from Gazprombank to finance the construction of two large FSUs.
The 361,600 cu m FSUs are to be built at Daewoo, will be deployed at NOVATEK’s Kamchatka and Murmansk Oblast projects and used for year-round LNG transhipment from Arc7s to conventional LNGCs.
Russian shipping giant, Sovcomflot (SCF) plans to sell a 15.5%-17% stake in new shares and raise around R42.25 bill ($534 mill) in an initial public offering (IPO) on the Moscow Exchange, the company and analysts said on Monday.
Sempra Energy said that the Cameron LNG export plant should return to full service in six weeks.
Kongsberg Digital (KDI) has won a contract to supply the Flensburg University of Applied Sciences Maritime Centre with a complete K-Sim engine room simulator package.
Scheduled for delivery in August 2021, the package includes a K-Sim Engine Full Mission engine room simulator and a K-Sim Engine desktop classroom configuration.
In addition, the university has ordered six different K-Sim Engine models to achieve training on a variety of propulsion and engine types.
As part of the package, KDI will develop a new model based on the machinery configuration from an LNGC powered by two MAN ME-GI low-speed engines that can operate on LNG, MGO and/or HFO - K-Sim Engine LNG Carrier MAN ME GI L22.
This model will be specifically designed to meet new safety and sustainability requirements in shipping. It will enable students to attain expertise in operating 2-stroke LNG-fuelled engines, with an emphasis on safety-related LNG handling, which aims to minimise risk to personnel and the marine environment.
KDI’s new K-Sim Engine eLearning modules are also included in the package. These are accessible via K-Sim Connect, a cloud-based ecosystem providing clients with a range of simulation services and benefits.
Keppel Shipyard, a wholly-owned subsidiary of Keppel O&M, is currently undertaking the conversion of the ‘BW Gallina’ into an FSRU.
LNG News Editor:
Facility west of Bergen handles 40 percent of gas supplies bound for Western Europe.
LNG News Editor:
Abu Dhabi, the wealthiest emirate in the United Arab Emirates, has taken a more than 5 percent stake in Cheniere Energy, the largest US exporter of liquefied natural gas from its Sabine Pass and Corpus Christi LNG export plants in Louisiana and Texas.
Glenfarne Group, the owner of the Magnolia LNG export project in Louisiana, has made a request to the Federal Energy Regulatory Commission for five more years to complete the plant and associated facilities.
The regulators had previously approved construction of Magnolia LNG and related pipeline expansions in April 2016 under its previous owner, the Australian-listed company LNG Ltd that ceased trading amid financial difficulties.
That approval had required LNG Ltd to complete the project within five years, by April 2021.
The Magnolia plant is proposed for a 115-acre site near the Calcasieu Ship Channel. It is designed to produce 8.8 million tonnes per annum of LNG from four Trains.
“Unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts,” privately-held Glenfarne told the FERC in requesting the extension.
“Magnolia and pipeline provider Kinder Morgan request a five-year extension of their authorizations, up to and including April 15, 2026, to place the Magnolia LNG Project facilities and Lake Charles Expansion Project facilities, respectively, into service,” Glenfarne added in its Magnolia project filing.
A final investment decision had not yet been taken on Magnolia as it sought to finalize a purchase agreement with a Vietnamese power and import venture in the Mekong Delta. That accord has now lapsed.
Glenfarne also acquired LNG Ltd.’s patented optimized single mixed refrigerant (OSMR) liquefaction technology from the Australian administrators.
Its purchase of Magnolia boosts the amount of US LNG export capacity Glenfarne has under development to 12 MTPA as it also owns Texas LNG Brownsville.
The Texas project received authorization from the FERC in November 2019 for the facility to be sited along the Brownsville Ship Channel.
Texas LNG seeks to supply Permian feed-gas as LNG to global customers along with two other rival projects being developed alongside.
These are the Rio Grande LNG project with five liquefaction Trains and over 26 MTPA of output and the smaller scale Annova LNG venture.
Rio Grande is own by NextDecade Corp. and one of the main shareholders in Annova is Exelon Corp, the utility headquartered in Chicago.
All three Brownsville projects have pushed back their investment decisions and original construction and engineering timetables.
Glenfarne’s Texas LNG leadership still includes the project's co-founders, Chief Executive Vivek Chandra and Chief Operating Officer Langtry Meyer.