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Russia expects China to enter Arctic LNG-2 project

First Deputy Head of the Russian Government Office Sergei Prikhodko believes that the gas sector is the most important direction of development of energy cooperation with China

MOSCOW, November 5. /TASS/. Russia expects China to enter the Arctic LNG-2 project, First Deputy Head of the Russian Government Office Sergei Prikhodko told reporters, commenting on Prime Minister Dmitry Medvedev’s visit to China, scheduled to take place on November 5-7.

"We believe that our Chinese partners may show interest in another project - the Arctic LNG-2," Prikhodko said.

According to him, the gas industry is an important area of Russia’s energy cooperation with China. The construction of an east-route gas pipeline from Russia to China is planned to be completed by the end of 2019. The 30-year contract says that 38 bln cubic meters of gas will be supplied through the new pipeline every year.

Earlier reports said that Saudi Arabia planned to purchase 30% of shares in the Arctic LNG-2 project. Saudi Energy Minister Khalid Al-Falih told TASS that the Saudi Aramco company intended to enter the project and become its second largest shareholder after Russia’s Novatek. On October 23, head of the Russian Direct Investment Fund Kirill Dmitriev said that Saudi Arabia was ready to invest about $5 bln in the project.

According to Novatek’s estimates, Russia will be producing over 80 mln tonnes of LNG by 2030, while the company plans to occupy two-thirds of the market.

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Dmitry Medvedev China

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