Page 106 - RusRPTApr19

Novatek's Yamal LNG and Arctic LNG-2. However, it is not clear whether the deal between Novatek and Zvezda was binding. In the meantime Novatek has already tested tanker-to-tanker delivery model that allows cutting transportation costs of operating heavy icebreaker tankers. The company also plans to build two new connection terminals in the Murmansk region for its Western delivery route and Kamchatka peninsula for its Eastern destinations. These measures could help cut the need for Novatek's tankers to 15-20 vessels, Dmitry Marinchenko of Fitch Ratings told Vedomosti. Novatek launched its first major LNG project Yamal in 2017 despite Western sanctions against its shareholder and influential Kremlin insider and stoligarch Gennady Timchenko. The company has also adopted an ambitious strategy for LNG growth through 2030 and is planning a second LNG plant, Arctic-2.
Russian independent gas producer Novatek is mulling the sale of up to 30% in its Arctic LNG 2 project to Saudi Aramco if the terms are favourable terms, CEO Leonid Mikhelson told reporters on March 17. Mikhelson said that the company expects a good cooperation under favourable terms. Said that that on the operating project Yamal LNG (all three main gas liquefaction trains have been commissioned), the company has reduced spot supplies volumes, whereas on long-term contracts they are growing: their share is expected to reach the highest level by the end of the first or the beginning of the second quarter of 2020. "They (spot supplies) are already declining, each three months they decline. Long-term contracts will fully enter into force roughly at the end of Q1 or the beginning of Q2 of 2020," he said. Arctic LNG 2 is Novatek’s second LNG project with the capacity of 19.8mn tonnes. It is scheduled for commissioning in 2022-2023. The Russian company has already closed the deal to sell a 10% stake in the project to France’s Total. Companies from Japan, South Korea and Saudi Arabia are also interested in acquiring a share in the plant.
Russian natural gas producer and emerging liquefied natural gas (LNG) segment leader Novatek closed the sale of 10% in its second LNG project Arctic LNG-2 to French energy major Total for $2.5bn, the companies announced on March 5. With the help of Total and a consortium of other international energy majors Novatek launched its first major LNG project Yamal in 2017 despite Western sanctions against its shareholder stoligarch Gennady Timchenko. Another shareholder in the project Leonid Mikhelson has just topped the latest Russian Forbes richest list with a fortune of $24bn. Apart from acquiring a 10% stake in Novatek's new project Arctic-2 to be closed by the end of 2Q19, in 2018 Total upped its stake in Novatek overall to 19.4%. Kommersant daily reminded that the latest deal faced some regulatory headwinds and was scrutinised by the Russian Federal Antimonopoly Service (FAS). Reportedly, after a direct intervention from Kremlin FAS backed off. The
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