Yamal LNG to be partly financed by Chinese fund

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

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