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Russian independent gas producer Novatek said late Wednesday that it has closed a deal to sell a 10% stake in the Arctic LNG 2 project to its long-term strategic partner Total.
The deal was initially agreed last May. and closed on schedule. Total already holds a 19.4% stake in Novatek. so the French company`s overall economic interest in Arctic 2 LNG is now about 21.6%. Novatek has said that it is looking for more partners to join the project. but plans to retain a 60% stake. Saudi Aramco. China`s CNPC and Japanese investors have expressed interest in joining the project.
Novatek plans to finalize the shareholder structure before taking a final investment decision in the second half of 2019. Should Novatek decide to reduce its participation below 60%. Total will have the option to increase its direct share in the project by up to 15 percentage points.
The company plans to commission the first train of Arctic LNG 2 in 2023. before reaching full capacity in 2026. Plans include three trains located on the Gydan peninsula. with a design capacity of 19.8 million mt. Feedstock will be provided from the Utrennoye field.
Novatek previously agreed to grant Total the option to acquire a 10% to 15% direct interest in all of its future LNG projects located on the Yamal and Gydan peninsulas.
Total also owns a 20% stake in Novatek`s Yamal LNG project. which includes three operational lines. each with a capacity of 5.5 million mt. A fourth train of 1 million mt is due to be launched in late 2019. Other shareholders in the project include CNPC and China`s Silk Road Fund.
