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Novatek is able to build fourth train of Yamal LNG plant — CEO

Russia's Novatek CEO says some minor production decline will be in 2017

MOSCOW, October 24. /TASS/. The resource base of the Yamal LNG project makes possible for Novatek to consider construction of the fourth train of the plant, Chief Executive Officer of the Russian gas producer Leonid Mikhelson said on Monday in an interview with Kommersant newspaper.

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Investment in Yamal LNG project totals $18.5 bln — Novatek

"No steps have been made to do that and we have not discussed it with partners but the idea is proper; the resource base makes possible for us to build one more train," Mikhelson said responding to a relevant question.

Investments into Yamal LNG are about $18.5 bln already, with the first stage ready by 76% and the overall readiness of 60%, Mikhelson said earlier.

Production drop

Novatek does not rule out a minor production drop next year, Mikhelson said.

"Some minor production decline will be in 2017 but we have resources to maintain the rate plateau and keep domestic market sales volume. We will maintain condensate production at a level supporting full utilization of processing capacity," Mikhelson said.

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

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