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Gazprom issues loan guarantees for Amur GPP on 226 billion roubles

CIS GAS MONETISATION

Gazprom issues loan guarantees for Amur GPP on 226 billion roubles

Gazprom issued guarantees of almost 3 billion euros on a loan from Intesa Sanpaolo for its subsidiary – Gazprom Pererabotka Blagoveshchensk, which is the customer of the Amur GPP construction project.

“PJSC Gazprom irrevocably and unconditionally: it guarantees the company Intesa Sanpaolo Bank Luxembourg, the company Intesa Sanpaolo S. p. A. and the company Banca IMI S. p. A. London Branch the fulfilment by Gazprom Pererabotka Blagoveshchensk of all its obligations under the loan agreement with collateral in the form of a guarantee between Gazprom processing Blagoveshchensk and the financing parties,” – reports Gazprom.

The guarantee amount is 226.4 billion roubles (up to 2.97 billion euros).

In January 2019, it became known that Gazprom intends to attract a bridge loan for the construction of the Amur GPP. Initially, the company was counting on funding in the amount of $20 billion from the CDB under the guarantee of European export credit agencies. However, as one of the top managers of the company noted, the lender was being “strict and demanding”, so it was decided to attract a bridge loan.

Since 2020, Gazprom would like to get loans from several other banks. In total, the company intends to raise $14 billion, half of which is for insurance of export agencies.

German contractor Linde and Italian Tecnimont are involved in the construction and supply of equipment, and the export credit agencies Hermes and SACE are involved in attracting financing. The consultants of the deal are Gazprombank, CDB and ING.

The first phase of the Amur GPP (two production lines) is to be commenced in April 2021, from January 1, 2025 the GPP is expected to reach its design capacity. The launch of the enterprise will allow to produce up to 2.6 million tons of ethane, 1.6 million tons of liquefied hydrocarbon gases, up to 60 million cubic meters of helium and up to 38 billion cubic meters of marketable gas annually.

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