Sunday, October 28, 2018

"Saudi Aramco wants to buy 30% of Novatek’s Arctic LNG-2"

Back in December 2017, at the opening of Russia's Yamal LNG operation the Saudis sent Energy Minister Khalid al-Falih to represent the Kingdom. President Putin told him "Buy our gas and you’ll save oil".
We caught up to the story in early February with the passage of Teekay's Eduard Toll across the Northern Sea Route.
Although sometimes slow to grasp what's up, we did have the sense to note the commencement of the Novatek operation was "a pretty big deal."
No kidding.

Here's The Barents Observer, October 26 with the rest of the story:

Russia’s energy minister welcomes Saudi Arabia’s state energy company as key commercial partner to the second gas plant on the Yamal Peninsula.
Seems like Russia’s private gas giant Novatek will have few problems finding foreign financial parters to its upcoming giga project in the Arctic. Previously, talks have been held with China’s CNPC, French Total as well as companies from Japan and South Korea.
Novatek has previously said it would keep 60% of Arctic LNG-2.

This week, Saudi Arabia’s Energy Minister Khalid Al Falih said to the country’s Al Ekhbariya TV channel that Saudi Arabia could buy 30% of Arctic LNG 2, Interfax reports.
Arctic LNG-2 is the second of Novatek’s LNG plants on the Yamal Peninsula. The first, Yamal-LNG, started production in December last year.

The Saudi Energy Minister visited Yamal-LNG in May 2017 and a Memorandum of Understanding (MOU) was signed between Novatek and Saudi Aramco in February this year. The MOU outlined how the two companies should collaborate internationally on natural gas projects, including LNG supplies, development of LNG markets, gas exploration and production projects, as well as research and technology development.

Leonid Michelson, Chairman of Novatek’s management board, said at the time: «We see a wide array of exciting and mutually beneficial energy opportunities to cooperate with Saudi Arabia.»

Arctic LNG-2 is estimated to cost $20-21 billion. Together with the already commissioned $27 billion Yamal-LNG, the constructions are by far the most expensive industrial development project anywhere north of the Arctic Circle in history....MORE