Novatek closes Arctic LNG-2 deal with Chinese and Japanese investors

Novatek closes Arctic LNG-2 deal with Chinese and Japanese investors
By bne IntelliNews July 23, 2019

Russia's second largest natural gas extractor and liquefied natural gas (LNG) producer Novatek closed the deal to sell 30% in its next LNG project to Chinese and Japanese investors, the company said on July 22. 

As reported by bne IntelliNews, the Russian company first offered the deal to sell a 10% stake in Arctic LNG-2 to its French strategic partner, energy major Total. 

Then in April Novatek cashed in by selling 20% in Arctic LNG-2 to Chinese CNOOC and CNODC, with 10% stake sold to each. Last month the remaining 10% was pledged to a consortium of Japanese Mitsui and JOGMEC.

The head of Novatek, Leonid Mikhelson, also confirmed the company's intention to maintain a 60% stake in Arctic LNG-2, which would mean that Saudi Aramco's interest in the project will be left unsatisfied.

Previous reports suggested that a 30% stake was the subject of negotiations with Saudi Aramco, while companies from Japan and South Korean KOGAS were also interested in acquiring a share in the plant.

In June Saudi Aramco reiterated its interest in the project, despite claims that it pulled out of the negotiations. Under the $21bn Arctic LNG-2 an LNG plant will be built in three stages with 6.6mn tonnes annual capacity each. 

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