Novatek courting Japanese investors with Arctic LNG projects

Yamal LNG operator, Novatek is looking to Japan as it looks to secure additional funds for its Arctic LNG project. 

In an interview with The Nikkei, Novatek CEO, Leonid Mikhelson said that the company’s business could be a core point in economic cooperation between Japan and Russia.

One of the projects Novatek is proposing is the Arctic LNG 2, with a targeted production of 12 million to 16 million tons per year. Operations are predicted to start in 2025.

Mikhelson said the company would prefer to see Japan as a partner in the project, from gas production to the construction of the LNG facility, as well as management and sales, with a portion of the plant’s output landing in Japan.

A €1 billion (Approx: US$1.05 billion) joint loan between the Japan Bank for International Cooperation and European financial institutions could soon be agreed for the Yamal LNG project.

Mikhelson added that the arrangement could be reached in time for the visit of Russian president Vladimir Putin, to Japan, scheduled for mid-December.

The report shows that 30 cooperation points have been set for implementation during Putin’s visit to Japan, with Mikhelson adding that Novatek’s LNG projects could find their place among those 30 priorities.

In September, JBIC and Novatek signed a memorandum of understanding to cooperate on liquefied natural gas projects.

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LNG World News Staff