Novatek’s LNG project in Yamal is entering its most intensive development phase. In 2015, about $8 billion will be invested in the project, more than twice as much as in the previous years.
The project is to be operational in 2017 and peak production of 16,5 million ton per year is to be reached already in 2021.
Project financing, however, does not come easy. Western sanctions have closed the door for Novatek’s access to U.S and EU credits and a bigger share of financing is now taken by project shareholders Novatek, Total and CNPC.
According to newspaper Vedomosti, the three partner companies have so far granted credits worth $4,53 billion and €610 million to the project. That sum will over the next couple of years believed to increase to more than $7,3 billion.
The total price tag for the project is almost $26,9 billion.
Novatek and project partners Total and CNPC are now about to turn their main attention on the construction of the LNG plant. The nearby sea terminal of Sabetta is about to become operational and project airport this month started regular flights.