Saudi Aramco, Russian RDIF & Japan's Mitsui to chase Arctic Novatek LNG


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Saudi Aramco, Russian RDIF & Japan's Mitsui to chase Arctic Novatek LNG

Saudi Aramco, Russian Sovereign wealth fund RDIF and Japan’s Mitsui & Co. Ltd. had been in talk to buy stakes of Novatek Arctic LNG 2 project, while the size of the investment had not yet been decided, a spokesman familiar with the matter mentioned yesterday, the 21st of December.

Novatek is expected to start their LNG production at Arctic LNG 2 by 2022-2023, while the plant itself, might cost around $25.5 billion. Crucially, the project would have an annual production capacity of 19.8 million ton and it would be Novatek’s second LNG plant, as Yamal LNG is the first.

In this project, Novatek owns 90 percent of stake, while it intends to sell-off 30 percent of its stake, and the rest are held by France’s Total. According to the spokesman, the Novatek might proffer over 30 percent stakes, on certain conditions.

At least two sources familiar with the matter, mentioned that, the Japanese, Russian and Saudi companies are chasing the arctic gas project, while, if the Russian could seal the deal, it would produce as much LNG as Qatar, the largest LNG producer of the world.

One of the two sources had been quoted saying that, “Mitsui, Saudi Aramco and RDIF are interested to buy a stake in Arctic LNG 2 but there is also an interest from South Asia.