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Mitsui, Saudi Aramco and Russia RDIF in talks to acquire Arctic LNG 2 stakes - Report

Gasoil News - Published on Wed, 26 Dec 2018

Image Source: Reuters
Sources familiar with the talks told Reuters that Japan's Mitsui & Co Ltd, Russian sovereign wealth fund RDIF and Saudi Aramco are in talks to buy stakes in Novatek's Arctic LNG 2 project, with the size of the investments still to be decided. Novatek plans to start producing LNG at Arctic LNG 2 in 2022-2023. The plant, which is expected to cost around USD 25.5 billion, will have an annual production capacity of 19.8 million tonnes and will be Novatek's second LNG plant after Yamal LNG. Novatek owns a 90 percent stake in the project, with France's Total holding the other 10 percent. Novatek intends to keep a 60 percent stake in Arctic LNG 2, offering 30 percent to other investors.

However, under certain conditions Novatek may cut its stake further, although not to below 50 percent in order to keep control over the project.

Two sources familiar with the talks said that Mitsui, Saudi Aramco and the Russian Direct Investment Fund are in talks with Novatek over taking stakes in the project, which should bring the Russian gas company closer to its goal of producing as much LNG as Qatar, one of the world's top LNG suppliers.

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Posted By : Joykumar Irom on Wed, 26 Dec 2018
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