Russian Federation / NEXI Provides Overseas Investment Insurance for Supporting Investment in Arctic LNG2 Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Investment Insurance to Mitsui & Co., Ltd. (Mitsui) for supporting its equity participation into the Arctic LNG2 Project that is being developed in the Russian Federation.

Mitsui has acquired 10% of the equity in the project company Arctic LNG2 for participation in the Project led by PAO Novatek, a leading Russian company engaged in the production and sale of natural gas. The share has been acquired through the company of the kingdom of the Netherlands, Japan Arctic LNG B.V., in which Mitsui has invested jointly with the Japan Oil, Gas and Metals National Corporation. Concerning Mitsui’s acquisition of interests, the Overseas Investment Insurance from NEXI covers the political risk in Russia.

The Project will develop natural gas and liquefaction facilities with a production capacity of 19.8 million tons per year from the conventional onshore gas field located on the Gydan Peninsula within the Arctic Circle, north of Russia, with the aim of starting LNG production from around 2023. Participation in the Project will provide Mitsui with offtake of LNG in proportion of Japan Arctic LNG B.V.’s share, and will therefore help securing a stable supply of LNG, an important resource for Japan. Also, LNG produced from the Project will be delivered mainly to Asia and Europe via the Northern Sea Route, contributing to create a LNG value chain.

As a governmental financial institution of Japan, NEXI will continue actively supporting a stable supply of resources and the overseas expansion of Japanese companies.

Contact: Overseas Investment Insurance Underwriting Group, Underwriting Department
Tel: +81-(0)3-3512-7668