Novatek completes Arctic LNG 2 participants structure

Russia’s largest independent natural gas producers Novatek completed the sale of participation interests in Arctic LNG 2 project to Chinese and Japanese partners.

The company said it has closed the stake sale to units of China National Petroleum Corporation, and CNOOC as well as the consortium of Mitsui & Co and Japan Oil, Gas and Metals National Corporation (Japan Arctic LNG).

“We now have formed the structure of the project’s participants by successfully closing the sale of interests in Arctic LNG 2,” noted Leonid Mikhelson, Novatek’s chairman.

“The target level of Novatek’s participation has been reached, allowing us to make the final investment decision and optimally use the company’s cash flow to finance our new projects,” he added.

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.