Novatek Freed of Yamal LNG Debt Service Guarantees

Russia's Novatek announced on September 24 that it had been freed of debt service guarantees at the Yamal LNG export terminal after fulfilling all the conditions stipulated in the project's external financing.

"The removal of 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," CEO Leonid Mikhelson said in a statement.

Around 70% of Yamal LNG's $27bn cost was covered by external financing from Russian and Chinese lenders. The rest was funded by Novatek and its project partners, France's Total and China's CNPC and Silk Road Fund. The terminal started operations in December 2017.

Novak is looking to lock in $9.5bn of financing from international lenders for the $21bn Arctic LNG-2 project, due on stream in 2017, as well as additional funds from Russian banks.