NOVATEK is ready to involve Japanese companies in the framework of the project “Arctic LNG”

NOVATEK is ready to involve Japanese companies in the framework of the project “Arctic LNG”

TOKYO, February 29. NOVATEK is ready to involve Japanese companies for the implementation of the project “Arctic LNG”. This was said at the forum “Trade and industrial dialogue Russia-Japan” Deputy Chairman of OAO “NOVATEK” Denis Khramov.

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“Unlike the Yamal LNG project, the partnership “Arctic LNG” is not configured yet, and we see this as a significant and serious option for Russian-Japanese cooperation. Right now, when the preparation of the project, when there is a principled formulation of conditions for participation, the entry fee, the opportunity to join the project – we believe that for Japanese companies it is quite convincing, and may even be unique,” he said.

Speaking about the project “Yamal LNG”, the Temples noted that the project is currently executed by 45%, primarily LNG plant performed at 56%.

“The General readiness of the LNG plant is 45%. The readiness of the first stage, which will be launched next year – more than half – 56%. Already produced, shipped and delivered to the site of the “heart” of the first stage is the main component that will provide the liquefaction of natural gas,” he said.

Temples noted that the cost of LNG production in the framework of the project “Yamal LNG” is $0.5 per barrel of oil equivalent.

“The average forecast price of LNG in the world for the next decade is $8-10 million for BTE in Asia, and $7-9 in Europe. From this point of view the liquefaction projects being implemented by NOVATEK on the Yamal Peninsula, which is extremely competitive. Cost one of the lowest in the industry and amounts to USD 0.5 per barrel of oil equivalent”.

“Yamal LNG” implements the project of construction of plant on production of liquefied natural gas (LNG) with a capacity of 16.5 million tons of LNG per year on the resource base of Yuzhno-tambeyskoe Deposit. The company’s shareholders are NOVATEK (60%), Chinese CNPC and French Total (20%). A shareholder must also enter the Chinese Fund “silk road” service 9.9% shares of NOVATEK.

Start of production of LNG scheduled for 2017, it will continue for at least 35 years. Under the project on the Peninsula created infrastructure, built a seaport for LNG transportation, the airport.

Temples stated that the products of NOVATEK in the framework of the project “Yamal LNG” and “Arctic LNG” can take up to 2025 up to 7% of the global LNG market.

“Understanding the prospects of LNG in the world, the Russian government approved the development and approved the comprehensive plan for the development of LNG in Russia – Yamal and Gedane… the Project involves the construction of two LNG plants – “Yamal LNG” and “LNG Arctic”. The overall goal is to produce 33 million tons of LNG by 2025, we estimate, will take up to 7% of the world market (this resource-approx.)”, he said.

About gas reserves “Arctic LNG”

Exploration confirms large gas reserves on the project “Arctic LNG”, than proven and probable reserves of 1.5 trillion cubic meters, said Temples.

“The next project is the project “Arctic-LNG, a second export project, provided a comprehensive plan. Now the work is done on the assessment of the resource base.. go seismic. Drilling is planned for 2017-2018 year, but already the resource base: proven and probable reserves under SEC classification amount to 1.5 trillion cubic meters,” he said.

These reserves, says Churches will be fully transferred to another plant-LNG (the first will work in the framework of the project “Yamal LNG) with a capacity of 16.5 million tons.

“Production drilling will be carried out in 2018, the beginning of commercial production of LNG – 2023”, – he said.

Prior to that, CEO Leonid Mikhelson said NOVATEK had not taken a final decision on plant location, but continues a conceptual review of the project.

Temples noted that there is also resource potential of 2 trillion cubic meters of gas. “There is no doubt that the results of exploration, the reserve balance will increase,” said a top Manager.

The capacity of the LNG plant will be 16.5 million tonnes.

About the project “Arctic LNG”

LTD. “Arctic LNG 1”, LLC “Arctic LNG 2” and OOO “Arctic LNG 3”, affiliates “NOVATEK”, included in the list of organizations who are granted the right to export LNG under the decree, signed by Prime Minister Dmitry Medvedev.

As previously reported, NOVATEK is considering building a new LNG plant at Sabetta port, where the factory is built in the framework of the project “Yamal LNG”. Gas for liquefying to flow with Sarmanovskogo (Morning) and Geophysical oil and gas deposits. Start of construction of the liquefaction plant planned for 2018. The first phase of the plant with a capacity of 5-5. 5 million tonnes is planned to build and launch in the 2018-2022 years, the second (capacity is 5-5. 5 million tons) in the years 2019-2024, a third similar power stage is to be completed and put into operation in the years 2020-2025.

While NOVATEK has not taken a final decision on plant location.