MOSCOW/DUBAI: Japan’s Mitsui & Co Ltd is in talks to buy stakes in Novatek’s Arctic LNG 2 project, with the size of the investments still to be decided, sources said. Novatek plans to start producing LNG at Arctic LNG 2 in 2022-2023. The plant, which is expected to cost around $25.5 billion, will have an annual production capacity of 19.8 million tonnes and will be Novatek’s second LNG plant after Yamal LNG. Novatek owns a 90 per cent stake in the project, with France’s Total holding the other 10 per cent. Novatek intends to keep a 60 per cent stake in Arctic LNG 2, offering 30 per cent to other investors.
However, under certain conditions Novatek may cut its stake further, although not to below 50 per cent in order to keep control over the project.
Two sources familiar with the talks said that Mitsui, Saudi Aramco and the Russian Direct Investment Fund are in talks with Novatek over taking stakes in the project, which should bring the Russian gas company closer to its goal of producing as much LNG as Qatar, one of the world’s top LNG suppliers.
“Mitsui, Saudi Aramco and RDIF are interested to buy a stake in Arctic LNG 2 but there is also an interest from South Asia,” one of the sources said.
Japan is the world’s top LNG consumer, with Russia among its key LNG suppliers. There are currently two LNG plants operating in Russia: Novatek’s Yamal LNG and Gazprom’s Sakhalin 2 and Moscow has ambitions for more. — Reuters
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