Gas producer Novatek has completed the sale of a 9.9% equity stake in the Yamal LNG project in Russia to China’s Silk Road Fund (SRF) for €1.8bn.
Following the deal, Novatek owns 50.1% interest in the project, Total 20%, CNPC 20% and the remaining 9.9% is owned by SRF.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the transaction, Novatek received a 15 year loan of €730m from SRF in December 2015 for financing the project. The Yamal LNG project will involve the construction of an LNG plant with three trains with total capacity of 16.5 million tonnes per annum.
The first train is expected to be operational by the end of 2017, with full capacity set to be achieved by 2021.
A consortium comprising Technip, JGC and Chiyoda will design and commission the plant, which will be supplied mainly from the Yuzhno-Tambeyskoye gas field.
The project is currently at the active construction stage. It is developed by JSC Yamal LNG and will also involve the construction of a seaport, airport and a power plant.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe $40bn medium to long-term investment and development SRF was established in Beijing in December 2014.
SRF makes outbound investment through the acquisition of equity stakes and the provision of debt financing.
Novatek’s upstream activities are concentrated in the Yamal-Nenets autonomous region, which accounts for 80% of Russia’s gas production and 16% of gas production worldwide.
Image: The Yamal LNG project will involve the construction of an LNG plant with three trains. Photo: courtesy of Novatek.
