Novatek officially sells stake in Yamal LNG to China’s Silk Road Fund

Drilling at South Tambery for Yamal LNG proejct

Russian gas giant Novatek officially agreed to sell a 9.9% equity stake in its Yamal LNG project to China’s Silk Road Fund as part of overall agreement that will see the Chinese company lend the Russian energy concern $792m over a 15-year period. “The signing of the binding agreement for the sale of an equity stake in Yamal LNG is another important step in the execution of our long-term development strategy,” Novatek, chairman Leonid V. Mikhelson said after the completion of the deal, which has been subject to negotiations for several months. “Through the closure of this transaction we will achieve the appropriate target shareholder structure, which will contribute to the planned financing of the project and further facilitate its successful implementation.”
The Yamal LNG plant is eventually expected to have an annual capacity of 16.5m tonnes and will be supplied by the South-Tambeyskoye field, whose estimated reserves currently stand at 926 bcm.
Confirmation of the loan came after  the 20th regular Sino-Russian Prime Ministerial meeting in Beijing yesterday. The meeting was co-chaired by Chinese premier Li Keqiang and Russian Prime Minister Dmitry Medvedev and saw the signing of a further 30 deals, several of which related to energy, investment, finance, high-technology, customs, education and tourism.

Source: chinadaily