Novatek CFO: Yamal LNG over 50% complete

Novatek-operated Yamal LNG project has passed the 50 percent overall completion mark, according to Mark Gyetvay, deputy chairman of Novatek’s management board and CFO. 

Speaking at the Flame Conference currently being held in Amsterdam, Gyetvay noted that 100 percent of the Yamal LNG’s production capacity has been sold.

Additionally, he confirmed the first cargo from Yamal LNG’s first train, which has passed the 65 percent completion mark, will be shipped during the second quarter of 2017.

Gyetvay added that the financing for the US$27 billion project with the capacity to produce 16.5 mtpa of LNG at full buildout, has been closed.

At the end of April, Yamal LNG secured a $12 billion loan from the Export-Import Bank of China and the China Development Bank.

Shareholders in the project, besides the operator Novatek that holds a 50.1 percent stake in the project are Total and CNPC with a 20 percent stake each and China’s Silk Road Fund with a 9.9 percent stake.

Novatek studying second LNG project

When asked about possible expansion, Gyetvay informed that Novatek is currently looking into the long-term feasibility of a new LNG project in the Gydan Peninsula, without revealing any details.

Novatek acquired two licences on the Gydan Peninsula in 2011, for the Geofizicheskoye and Salmanovskoye (Utrenneye) fields on the shores of the Gulf of Ob, while its unit, Arctic LNG 1, won an auction for exploration and production at the Trekhbugorniy licence area in December 2014, Novatek’s website reveals.

It is estimated that in total the three fields hold approximately 1.38 tcm of gas that could provide the feed gas for the new LNG plant.

Additionally, Novatek acquired licences for the East-Tambeyskiy and North-Obskiy areas in the Gulf of Ob in 2011 that are believed to hold up to 0.9 tcm of gas under the Russian reserve classification system.

Gyetvay did, however, say he believes no major LNG project will be undertaken with oil prices below $40 per barrel.

LNG World News Staff