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Gazprom and Gazprombank to work together on LNG projects

07th March 2014

Gazprombank will put together a detailed plan of financing for the LNG projects that will be submitted to Gazprom

The contract was signed by Alexey Miller, the chairman of the Gazprom Management Committee, and Andrey Akimov, the chairman of the Gazprombank Management Board

A cooperation agreement to employ shared Baltic and Vladivostok liquid natural gas projects. The contract was signed by Alexey Miller, the chairman of the Gazprom Management Committee, and Andrey Akimov, the chairman of the Gazprombank Management Board.    

Based on the agreement, both parties will cooperate during these projects. Gazprom will hold the majority stake in the project companies, which was set up to carry out the Baltic and Vladivostok projects.

The project companies will take ownership of the LNG plants in addition to other production facilities and manage the projects at every stage including their development.

The contract also states that Gazprombank and Gazprom will organize negotiations with international and Russian financial institutions to receive financing and equity for the projects.

Gazprom will help with the project companies, inter alia by selecting suitable sites for LNG plants by obtaining land lease/acquisition rights required for the construction and providing the LNG projects with the required amount of natural gas.

Gazprom is developing the LNG sales and transportation segment. Their aim is to increase its presence in certain markets. The company anticipates raising its share from 5 to 15 per cent in the international market international LNG market soon after theBaltic and Vladivostok projects are authorized.

The Vladivostok LNG project enables the construction of an LNG plant with an annual capacity of 10m tons in the Primorye Territory, which has the possibility to expand. The first train will begin operating in 2018.

The Baltic LNG project provides for the construction of an LNG plant with an annual capacity of about 10m tons in the Leningrad area. The “Investment Rationale” for the project will start the first part of 2014.

 

 

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