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    Japanese loans to Arctic LNG-2 remain suspended


It is unclear whether JBIC has already dispersed some funds under the loan agreement.

by: NGW

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Japanese loans to Arctic LNG-2 remain suspended

The government-owned Japan Bank for International Cooperation said on June 8 that a loan agreement covering up to 1.71bn ($1.8bn) of financing for Russia's Arctic LNG-2 project remains suspended.

JBIC signed the agreement in November last year. But JBIC governor Tadash Maeda said in early March that the bank had temporarily suspended the loans, to check whether the Russian government would allow Novatek and the project's other shareholders to repay them.


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The bank's special advisor Hiroki Sekine confirmed on June 8 that the suspension remained, while declining to say if any funds had been dispersed since the agreement was reached.

The $21.3bn Arctic LNG-2 is led by Russia's Novatek, which has a 60% stake in the project. France's TotalEnergies, China's CNPC and CNOOC, and a Japanese partnership of Mitsui and JOGMEC, each own 10% interests.

Officially, the 19.8mn metric ton/year export terminal is still scheduled for launch in 2023, but Novatek CEO Leonid Mikhelson warned in April that there could be delays. The project is significantly reliant on not only Western financing, but also Western equipment and technology.