CEO: Yamal LNG capacity may slightly exceed 16.5 mln tns

MOSCOW, Jun 5 (PRIME) -- The capacity of U.S. $27 billion Yamal LNG project of Russian independent gas producer Novatek may exceed previously announced 16.5 million tonnes of liquefied natural gas (LNG), Novatek CEO Leonid Mikhelson told reporters on Monday.

“We have tested a production line in Italy, it demonstrated a higher capacity than it had been projected… I think the capacity will be confirmed at 16.5 million tonnes and may even exceed the figure,” he said.

The executive also said that LNG produced by the facility may be partly sold via French Engie, and that Belgian gas shipment company Fluxys will invest in the project’s delivery facilities. Additional volumes will be sold on the spot market, he added.

Mikhelson said that all supplies under long-term contracts, which are effective since March-April 2018, will be performed according to the schedule.

Novatek has diversified the investor portfolio of the Yamal LNG project attracting German Hermes and Swedish EKN, that is why the company will not fully use the loans secured with Chinese banks, the CEO said. Earlier he said that the European investors will provide financing of around 300-400 million euros within one or two months.

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