Support The Moscow Times!

Now is the time to support independent reporting from Russia!

Contribute Today

Novatek Closes Arctic LNG-2 Deal with Chinese and Japanese Investors

The company intends to keep a 60% stake in the project.

An LNG plant will be built in three stages with 6.6 million tons annual capacity each. Novatek

Russia's second-largest natural gas extractor and liquefied natural gas (LNG) producer Novatek closed the deal to sell 30% in its next LNG project to Chinese and Japanese investors, the company said on July 22. 

The Russian company first offered the deal to sell a 10% stake in Arctic LNG-2 to its French strategic partner, the energy major Total. 

Then in April Novatek cashed in by selling 20% in Arctic LNG-2 to Chinese CNOOC and CNODC, with a 10% stake sold to each. Last month the remaining 10% was pledged to a consortium of Japanese Mitsui and JOGMEC.

The head of Novatek, Leonid Mikhelson, also confirmed the company's intention to maintain a 60% stake in Arctic LNG-2, which would mean that Saudi Aramco's interest in the project will be left unsatisfied.

Previous reports suggested that a 30% stake was the subject of negotiations with Saudi Aramco, while companies from Japan and South Korean KOGAS were also interested in acquiring a share in the plant.

In June Saudi Aramco reiterated its interest in the project, despite claims that it pulled out of the negotiations. Under the $21 billion Arctic LNG-2 an LNG plant will be built in three stages with 6.6 million tons annual capacity each. 

This article first appeared in bne IntelliNews.

Read more

Russia media is under attack.

At least 10 independent media outlets have been blocked or closed down over their coverage of the war in Ukraine.

The Moscow Times needs your help more than ever as we cover this devastating invasion and its sweeping impacts on Russian society.