BEIJING, November 10 (RIA Novosti) — Russia's Novatek is in talks with Chinese banks to attract funding for the Yamal liquefied natural gas (LNG) project in yuan, willing to pay for the supply of equipment in Chinese currency, Novatek's co-owner Gennady Timchenko told RIA Novosti Monday.
"We're not considering dollars at all, we will not take the money in dollars, we'll take the money, perhaps in a different currency, perhaps in yuan," Timchenko said, answering question about the investment of the project by Chinese banks.
According to Novatek's co-owner, reaching full agreement on this issue is unlikely during the current visit to China.
Russia's largest independent gas producer Novatek has signed a contract with China's CNPC to supply 3 million tons of LNG per year for 20 years as part of the Yamal LNG project.
The price of LNG will be determined by a formula linked to the JCC oil index. Vnesheconombank, Gazprombank, Yamal LNG and the China Development Bank signed a memorandum on organizing project financing. According to the document, the parties will endeavor to launch project financing in the fourth quarter of 2014 on the most favorable terms.
Russia and China have also decided to establish a joint venture for the production of LNG.
