Novatek concludes Arctic LNG 2 deal with Chinese and Japanese investors

Novatek PAO, Russia’s biggest private gas producer, has completed the sale of 30% stake in its upcoming LNG project in Russia, the Arctic LNG 2, to China’s National Petroleum Corporation (CNPC), CNOOC and Japanese consortium.

The statement did not provide details on the investment amount.

With a production capacity of approximately 19.8 million tons per year (Mt/year), or 535,000 barrels of oil equivalent per day (boe/d), Arctic LNG 2 unlocks more than 7 billion boe of hydrocarbons’ resources in the onshore Utrenneye gas and condensate field, located on the remote Gydan Peninsula in northern West Siberia. The project involves the installation of three gravity-based structures in the Gulf of Ob on the three liquefaction trains of 6.6 Mt/year capacity each.

Novatek currently holds 60% of the Arctic LNG 2, while Total SA, China National Oil and Gas Exploration and Development Company (CNODC), CNOOC, Japanese Mitsui and JOGMEC each hold a 10% stake in the project.