Saudis still interested in Arctic LNG stake - Novatek

Author: Hal Brown


LONDON (ICIS)--Saudi Aramco is still interested in investing in Novatek’s Arctic LNG 2 project and an announcement on the final partner is expected in the coming days, Novatek’s deputy chairman Mark Gyetvay told ICIS on Monday, 13 May.

“We’re looking at a couple of people and they’re interested,” said Gyetvay on the sidelines of the Flame LNG conference in Amsterdam. “But they obviously won’t get 30%.”

State-owned oil company Saudi Aramco had previously expressed a desire to take a 30% stake in Novatek’s Arctic LNG 2 project, but recent Chinese investment means the remaining stake available is limited.

Around three weeks ago, Novatek sold stakes in the project to China National Oil and Gas Exploration and Development Company, a wholly-owned subsidiary of China National Petroleum Corp, and China National Offshore Oil Corp, with both taking a 10% stake each.

France’s Total took a 10% stake in the project in March, which leaves just 10% left for another partner given that Novatek holds a 60% stake.

The final investment decision for Arctic LNG 2 is expected early in the third quarter, said Gyetvay.

Export volumes will be shipped to a trans-shipment point at Kamchatka in the Russian Far East, and transferred onto conventional LNG carriers.

The Kamchatka trans-shipment point will be launched around 2022, said Gyetvay.

It will be able to handle 20mtpa of LNG with the option to expand to 40mtpa.

Saudi Aramco was not immediately available for comment.