According to Reuters, a new firm, China Insurance Investment Ltd, has been created by over 40 Chinese asset managers and companies. The firm has raised US$6 billion for a first fund to finance both infrastructure and energy projects abroad. Part of this sum will be used to help finance the US$27 billion Yamal LNG project in Russia, which has struggled to raise funds because of sanctions resulting from the eastern Ukraine conflict.
Reuters reports that €700 million has already been provided by China’s Silk Road Fund to the project in return for a 9.9% project stake. A further US$12 billion is also set to be provided by Chinese lenders.
Yamal LNG is scheduled to begin LNG production in 2017, and will consist of three lines, each with a 5.5 million tpy capacity.
Edited from various sources by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/05012016/yamal-lng-to-be-partly-financed-by-chinese-fund-1827/