Russia’s Novatek hopes to close sale of 10% in Yamal LNG soon

MOSCOW, Jan 18 (PRIME) -- Independent Russian gas producer Novatek plans to close a deal to sell 9.9% in its liquefied natural gas (LNG) project Yamal LNG to China’s Silk Road Fund in several weeks, Novatek CEO Leonid Mikhelson told President Vladimir Putin on Monday.

“We have signed the 9.9% entering of the Silk Road investment fund in December 2015. Corresponding documents were signed. The contract is now being ratified by the State Duma. And the deal will be closed after that in the next several weeks,” he said.

The agreement has to be ratified by parliament’s lower house State Duma as after the deal Chinese companies will own more than 25% in the project. Currently, Novatek owns 60% in Yamal LNG, China’s CNPC 20% and France’s Total 20%.

Mikhelson also said that about U.S. $15 billion have already been invested in the project, including $5 billion of Chinese money, $3.7 billion of French money, and $2.3 billion from Russia’s National Wealth Fund.

The Yamal LNG project envisages construction of a 16.5-million-tonne LNG plant on the basis of the Yuzhno-Tambeiskoye field on the Yamal Peninsula. The first stage may be launched in 2017. The project’s total cost stands at U.S. $26.9 billion.

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