Page 15 - AsianOil Week 25 2022

GLNG EUROPE GLNG

Novatek head downplays concerns

of Arctic LNG-2 launch delays

TERMINALS NOVATEK CEO Leonid Mikhelson sought to financing for Arctic LNG-2.
downplay concerns about delays at the compa- Arctic LNG-2 is under construction on the
ny’s Arctic LNG-2 project at the St Petersburg Gydan Peninsula, consisting of three lique-
International Economic Forum (SPIEF) last faction trains each with a 6.6mn tpy capacity.
week, noting that while there were “many prob- Novatek owns a 60% stake in the project, while
lems, we strive to meet the 2023 deadline.” TotalEnergies, and Chinese companies CNPC
Mikhelson had warned at a shareholders’ and CNOOC, each own 10% shares, and the
meeting in April that the project, which at full remaining 10% is held by a partnership between
capacity will produce 19.8mn tonnes per year Japan’s Mitsui and JOGMEC.
(tpy) of LNG, might have its schedule revised TotalEnergies announced in March that
because of Western sanctions. As part of the fall- it would stop investing in Arctic LNG-2 and
out from Moscow’s war in Ukraine, a number of would no longer include the project’s hydrocar-
Western financiers, contractors and equipment bon reserves on its balance sheet. But the French
suppliers have withdrawn from Russia’s oil and major also ruled out plans to sell its stake or
gas industry, or intend to do so, which has raised any of its other assets in Russia, which include
doubts about whether some of the country’s a 19.4% stake in Novatek itself, a 20% interest in
more complicated projects can be implemented the completed Yamal LNG plant and 20% in the
on time. Kharyaga production-sharing agreement (PSA).
Speaking at SPIEF, Mikhelson warned that Authorities in the UK and Canada imposed
the launch date for the two of Arctic LNG-2’s two personal sanctions on Leonid Mikhelson in
phases might have to be revised, as Novatek had early April. Nevertheless, on April 21, Novatek’s
planned to use foreign-made turbines which are shareholders voted in favour of re-electing the
no longer an option under sanctions. The second businessman, a major shareholder in the com-
phase is currently scheduled for launch in 2024. pany, as their chairman of the board until May
Mikhelson also said there were no issues with 25, 2027.™

Week 25 24•June•2022 www. NEWSBASE .com P15