06 March 2012 19:18 [Source: ICIS news]
HOUSTON (ICIS)--The proposed 15m tonne/year Yamal liquefied natural gas (LNG) liquefaction project in Arctic Russia could reach a final investment decision (FID) at the earliest by the end of the year, an executive with France’s energy major Total said on Tuesday.
Total, which secured a 20% stake in the venture in October, could reach FID by next year, at the latest, or by the end of 2012, said Yves-Louis Darricarrere, president of exploration and production during the IHS CERAWeek conference in Houston.
NOVATEK is the majority owner of the Yamal project.
Total’s Darricarrere said NOVATEK’s initial production in Russia has continued to grow and expects capacity will continue to grow.
NOVATEK has said it would like to start the first 5m tonne/year train by 2016.
In addition to Total, NOVATEK has sought additional partners at Yamal but wants to keep a 51% interest. NOVATEK has said it could bring in two or three other companies in by early 2012 with Japanese, Indian and Qatari companies in progress.
The project’s feed gas will come from the South Tambey field, which is estimated to hold 802bn cubic metres of natural gas.
Darricarrere said the development partners in the Russian Shtokman pipeline and LNG scheme still have issues to overcome before taking FID but thinks they are close to a decision. The Shtokman phase 1 consortium last said the FID would be made in March 2012.
Shtokman is rated at 23.7bn cubic metres/year, but in two phases. The first phase is pipeline while the second is a 7.5m tonne/year LNG plant.
Total has a 25% role in Shtokman development, which is headed by Russia’s Gazprom (51%), and also includes Norway’s Statoil (24%).
Additional reporting by Ruth Liao
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