25 Jul 2019, Stella Zlatareva, EMIS M&A Team
Japanese consortium joins China’s CNPC, CNOOC and France’s Total as investor in Russian LNG project Arctic LNG-2
The agreement was signed during the G20 Summit in Osaka and envisages Mitsui and JOGMEC buying around 2 million tonnes of LNG per year on a long-term basis.
Once it commences production around 2023, Arctic LNG-2 will become Novatek’s third LNG project and its second in the Arctic Circle in Russia. The project will develop a plant for production of LNG involving three liquefaction trains with annual output capacity of 19.8 million tonnes of liquid gas. The project is estimated to cost up to USD 23bn to develop and it is based on the hydrocarbon reserves of the Utrenneye field (2P reserves of the field were measured at 1.14 billion cubic meters of natural gas and 57 million tonnes of liquids as of December 2018). LNG from Arctic LNG-2 will be delivered mainly to Asia and Europe via the Northern Sea Route.
Russia eyes a significant share in the global LNG market and aims to match one of the world’s dominant players, Qatar. The country already operates two LNG plants: Gazprom’s Sakhalin-2 and Novatek’s Yamal LNG, in which Total and CNPC also have stakes. Original source: EMIS - DealWatch