Novatek finalises sale of 10% Yamal LNG stake to Chinese Silk Road Fund

Novatek has finalised the sale of a 10% stake in the Yamal LNG plant in north-west Siberia to the Chinese Silk Road Fund for $12bn, bringing Chinese ownership of the $27bn project up to 30%.  The deal has been under negotiation since last summer when it became clear that Russia would require further outside funding to complete the project which entails the construction of three  5.5m tonne capacity pipelines from its northern  South Tambeyskoye field.
Following the deal, Novatek will retain a 50.1% controlling stake. As well as the Silk Road Fund  – itself a subsidiary of the China Development Bank (CDB) – the other shareholders are France’s Total and the China National Petroleum Corporation (CNPC), each with 20%. 
The project “is under active construction” according to Novatek, and is scheduled to come on stream next year.
The deal reflects both Russia’s increasingly urgent search for foreign investment to develop its energy infrastructure and China’s attempts to reduce its dependency on coal, by securing alternative sources of hydrocarbons from abroad.

Source: Gazeta