Gazprom Looks to Attract $14bn for World's Second Largest Gas Processing Plant

With China's appetite for natural gas growing by leaps and bounds the Russian oil and gas giant should have no problem securing the funds for the Far Eastern facility either

Gazprom is in discussions with banks as it looks to attract in 2020 project financing of US$14 billion for the construction of its Amur gas processing plant, which will be Russia’s largest and the second-largest in the world, Gazprom manager Alexander Ivannikov, who is responsible for the company’s financial and economic policy, told Russian media on Monday.

Gazprom has reached agreements with export agencies, which are ready to provide guarantees for US$7 billion, and talks with banks are ongoing, Ivannikov said.

This year, Gazprom won’t need funds for the Amur gas processing plant because its financing needs have been covered by bridge loans, the manager noted.  

Gazprom is currently holding talks with 27 banks for financing for next year. The Russian gas giant plans to raise US$14 billion for the Amur gas processing plant, including US$7 billion in guarantees from export agencies, Russian media quoted Ivannikov as saying.

Once in full operation, the Amur Gas Processing Plant will be Russia’s largest and the world’s second largest natural gas processing facility, according to Gazprom. The plant is designed to be a crucial link along the Power of Siberia gas pipeline with which Gazprom plans to begin delivering gas to China in December 2019.

Construction at the Amur gas processing plant started back in 2015. As of the end of December 2018, the progress on the gas processing plant’s construction was at 24 percent, according to Alexey Miller, the chairman of Gazprom’s Management Committee.

The Amur gas processing plant will have a design capacity of 42 billion cubic meters of gas per year. The plant is planned to have six production lines, and the first two lines are currently scheduled for commissioning in 2021. The Amur gas processing plant will also host the largest helium production facility in the world, according to the Russian gas giant. 


Source: OilPrice.com

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