NOVATEK and China’s Silk Road Fund (SRF) have concluded a framework agreement on the acquisition by SRF of a 9.9% equity stake in the Yamal LNG project in Russia.
According to the agreement, the transaction is scheduled to close after the satisfaction of stipulated conditions precedent, including the receipt of all necessary approvals. Following the completion of the deal, the shareholder structure of the project will be as follows:
Yamal LNG project envisages the construction of an LNG plant based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2014 were appraised at 926 billion cubic meters of natural gas. The project is currently at the active construction stage.
The planned LNG plant will have three trains with total capacity of 16.5 million tonnes of liquefied natural gas per year. First train will be operational by the end of 2017 and the full capacity will be achieved by 2021. In addition to the LNG plant, the project includes construction of a seaport and airport as also a 282 MW power plant.
The total project investment is estimated at US$27 billion.
President of SRF, Wang Yanzhi stated
“We consider Yamal LNG to be one of the most prospective and competitive LNG projects in the world. Such observation supports our interest in becoming its shareholder. We hope our entrance into the Project will facilitate an expedited closing of the Project’s general external financing, as well as contribute to further development of the Chinese-Russian cooperation in the energy sector”.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated
“We welcome SRF’s entrance into the Yamal LNG project as another step forward in the mutually beneficial cooperation with our Chinese partners in the development of gas projects in the Russian arctic region”.