Novatek, CNPC Close Yamal LNG Deal

Russia’s Novatek and China National Petroleum Corporation (CNPC) on Thursday concluded an agreement on purchase of a 20% equity share in the Yamal LNG project by the Chinese energy giant.

A tentative deal was signed in June this year. The Chinese firm will also get least 3 million tons of LNG per annum from the project.

The acquisition of a 20% stake in the project by CNPC is estimated to be closed by October 1, 2013.

Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field.

Following completion of the deal, the shareholder structure will be as follows: Novatek (60%), Total (20%) and CNPC (20%).