Novatek CEO: Yamal LNG 76 pct complete

Novatek-led US$27 billion Yamal LNG project reached 76 percent completion and is on schedule to produce first liquefied natural gas in 2017, according to Novatek’s CEO Leonid Mikhelson. 

All issues related to the project’s financing have been resolved, Mikhelson said, adding that similar projects should be implemented without the state financing, Reuters reports.

The project has already secured $18.4 billion in financing with an additional $400 million from JBIC in the pipeline, according to last week’s report.

Novatek and the Japan Bank for International Cooperation went on to sign a memorandum of understanding to cooperate on future liquefied natural gas projects, one of which could be Novatek’s Arctic LNG 2, planned for 2025.

However, Mikhelson did not reveal the expected cost of the planned 16.5 mtpa project, noting that the company is not in a hurry to select partners for the new venture that would enter the development phase once the Yamal LNG project’s construction is complete.

LNG World News Staff