China Takes Stakes in Arctic LNG 2 Project (Update)

(Adds details of Cnooc in lead)

Russian privately owned producer Novatek has sold 10% of its Arctic LNG 2 plant to a subsidiary of China National Petroleum Corp (CNPC), and another 10% stake to China National Offshore Oil Corp (Cnooc), it said April 25.

Novatek CEO Leonid Mikhelson said: "China represents one of the key consuming markets for our LNG sales.... Arctic LNG 2 will be a game-changer in the global gas market."

Mikhelson said the agreement with China National Oil & Gas Exploration & Development was a "continuation of our successful co-operation with CNPC. We successfully launched the Yamal LNG project on budget and ahead of initial schedule as partners, which is a unique achievement in the global gas industry. The accumulated experience of working together is a solid basis for the successful implementation of our new LNG project.”

The Arctic LNG 2 project will have three LNG trains of 6.6mn mt/yr each, liquefying gas from the Utrennee field in Russia's far north. Yamal LNG has three trains each of 5.5mn mt/yr and is fully operational. French Total has a 20% stake in Yamal LNG and a 10% stake in Arctic LNG 2 and a 19% stake in Novatek.