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    Gazprombank Funds Novatek's LNG Storage Facilities

Summary

The facilities will be fitted at transhipment terminals in Kamchatka and Murmansk.

by: Joe Murphy

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Gazprombank Funds Novatek's LNG Storage Facilities

Russia's Gazprombank has agreed to provide a €522mn ($613mn) loan to gas supplier Novatek for the construction of floating LNG storage facilities in the Kamchatka and Murmansk, it said on September 22.

The two facilities with a capacity of 361,600 m3 each will be built at an Asian shipyard and fitted at the two LNG transhipment terminals Novatek is building to facilitate exports from its LNG projects in the Russian Arctic. Gazprom Neft's loan carries a 16-year duration.

The terminals in Kamchatka and Murmansk will unload LNG from specialised ice-breaking LNG carriers onto conventional tankers for further transport to markets, saving time and costs. Their launch is due to coincide with the start-up of Novatek's Arctic LNG-2 terminal in 2023.