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Novatek says its share in Arctic LNG-2 project may be less than 60%

The Arctic LNG 2 is the second LNG project of Novatek after Yamal LNG

ST.PETERSBURG, June 7. /TASS/. Russian independent gas producer Novatek does not rule out that its share in the Arctic LNG-2 plant will be less than 60%, Novatek CEO Leonid Mikhelson told reporters on the sidelines of the St. Petersburg International Economic Forum.

"Various options are possible. We are discussing such options," he said.

Earlier, Mikhelson said that the company wants to keep at least 60% in the project.

Novatek already closed the deal to sell a 10% stake in the project to France’s Total. Companies from Japan, South Korea and Saudi Arabia are also interested in acquiring a share in the plant.

Talking to reporters at the SPIEF, the CEO of Novatek also said that his company expects to find all remaining partners in the Arctic LNG-2 project in the first half of 2019.

"In the first half of the year, all legally binding documents will be signed," he said. Mikhelson did not comment on the possible participation of Saudi Aramco in the project.

Speaking about the markets where the company plans to sell LNG produced as part of the Arctic-LNG-2 project, Mikhelson said that Novatek intends to supply 80% of LNG to Asian Pacific region.

"Our vision is 80% to 20%. 80% [will go] to the Asian Pacific markets," he said.

The Arctic LNG 2 is the second LNG project of Novatek after Yamal LNG. The project is based on hydrocarbon resources of the Utrenneye field on the Gydan peninsula. The plant will contain three LNG trains with capacity of 6.6 mln tonnes per annum each.

In late May, the enterprise’s director general Oleg Karpushin said that Novatek plans to launch the first train of the Arctic LNG 2 plant in Q1 2023. The second and third trains are expected to be launched in Q1 2024 and Q4 2025, respectively. Engineering works will be completed in July 2023.