Gazprom and Gazprombank to implement LNG projects

An Agreement of Cooperation as part of LNG projects was signed yesterday at Gazprom’s headquarters by Alexey Miller, Chairman of the Gazprom Management Committee, and Andrey Akimov, Chairman of the Gazprombank Management Board.

The document states that both parties will cooperate within the Baltic LNG and Vladivostok projects. Gazprom, who currently supply LNG to 10 countries, will be majority shareholders in new project companies set up to implement these projects, although Gazprombank will also have the opportunity to acquire interests in the project companies.

The project companies will own LNG plants and production facilities and they will manage the projects through all stages of the production process including the development of project documents.

According to the agreement, Gazprombank and Gazprom will hold talks with both Russian and international financial institutions to obtain equity and external financing for the project companies.

Gazprom will support the project companies, among other things, by selecting suitable sites for LNG plants, obtaining land lease/acquisition rights for construction and by providing the LNG projects with necessary volumes of natural gas.

Gazprombank is due to submit a detailed finance plan for the projects to Gazprom.

Adapted from press release by Ted Monroe

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