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Investment in Yamal LNG project totals $18.5 bln — Novatek

Yamal LNG is a large scale project on creating a liquefied natural gas production facility with annual capacity of 16.5 mln tonnes

VLADIVOSTOK, September 3. /TASS/. Investments in Yamal LNG project have already reached around $18.5 bln, Novatek’s Chairman of management board Leonid Mikhelson said.

"Around 18.5 bln dollars," he said when asked about the total amount of investment in the construction, adding that the first line of the plant is 76% ready and totally the project is 60% ready.

Yamal LNG is a large scale project on creating a liquefied natural gas production facility with 16.5 mln tonnes per year capacity. The project involves the creation of transport infrastructure, including a seaport and an airport near the Sabetta village (north-east of the Yamal Peninsula).

The shareholders are Russia’s gas company Novatek - 50.1%, France’s Total - 20%, China’s CNPC - 20% and the Silk Road Fund - 9.9%.

New subsoil license 

Novatek, which is Russia's largest independent gas producer, won the bid for a geological survey, exploration and hydrocarbons production license for the Syadorskiy subsoil area for a term of 25 years.

"The Syadorskiy license area expands company’s resource base in the northern part of the Yamal Peninsula. As of January 1, 2016, the license area held 24.6 bcm of Russian C1 natural gas reserves, and recoverable resources in the amount of 62.7 bcm of gas and 18.6 mmt of liquid hydrocarbons," runs the company's report.

The auction resulted in a one-time payment for the subsoil use in the amount of 404 mln rubles ($6.2 mln), Novatek said.

Novatek is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Its upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region.