Photo: Yamal LNG project (Image courtesy of Novatek)

CNPC unit grabs 10 pct stake in Novatek’s Arctic LNG 2 project

CNPC unit grabs 10 pct stake in Novatek's Arctic LNG 2 project
Yamal LNG project (Image courtesy of Novatek)

Novatek, Russia’s largest private gas producer, signed a deal with China National Oil and Gas Exploration and Development Company (CNODC), a unit of CNPC, to enter the Arctic LNG 2 project. 

The binding agreement provides for the acquisition by CNODC of a 10 percent participation interest in Arctic LNG 2, NOvatek said in a statement.

“The agreement is an important milestone in our Arctic LNG 2 project implementation as well as a continuation of our successful cooperation with CNPC,” noted Novatek’s head Leonid Mikhelson.

“We successfully launched the Yamal LNG project on budget and ahead of initial schedule as partners, which is a unique achievement in the global gas industry. The accumulated experience of working together is a solid basis for the successful implementation of our new LNG project,” he said.

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The project is based on the hydrocarbon resources of the Utrenneye field.