Talks on Yamal LNG halted
Talks between Novatek and several foreign companies on the construction of a LNG plant in the Yamal Peninsula have been put in hold.
The Novatek company confirms that the talks have been put on hold following uncertainties regarding state support to the project, Oilru.com reports. The talks are expected to resume later this year, after federal authorities reveal their level of support to projects in Yamal.
Novatek, Russia’s biggest private gas producer, intends to attract foreign companies to the LNG project, which will be linked with production at the South Tambey field. The plant is projected to produce an annual of 15 million tons of LNG.
As previously reported, Novatek intends to export part of the LNG along the Northern Sea Route to markets in Asia.
In June this year, Gazprom, which controls several other huge projects in the peninsula, joined the LNG project. Gazprom CEO Aleksey Miller subsequently told the press that production in the project could start already in the period 2016-2018.
It is expected that three or four foreign companies will be invited to join the gas project. Both Total and Shell have expressed their interest.
