Novatek has agreed to sell a 10% stake in its 19.8 Mt/year Arctic LNG 2 project in northern Russia to a consortium of Japanese companies Mitsui and Japan Oil, Gas and Metals National Corporation (JOGMEC). The two companies will also secure a long-term offtake of approximately 2 Mt/year of LNG. The acquisition is expected to complete soon, pending approval of relevant government authorities. In June 2019, Novatek sold a 10% stake in the project to CNOOC. With the sale of an additional 10% stake, the Russian group will retain 70% in the project, with Total and CNOOC holding 10% each and Mitsui and JOGMEC sharing another 10%.
The 19.8 Mt/year Arctic LNG 2 project will consist of three liquefaction trains of 6.6 Mt/year capacity each, with the first one expected to be commissioned in 2023. The liquefaction plant will be fed by output from the Utrenneye field in the hydrocarbon-rich Gydan peninsula in the Yamal-Nenets Autonomous District (Russia). Reserves are estimated at 1,150-2,000 bcm of gas and 60-105 Mt of liquids.