Novatek and EDF in "Preliminary" Talks on Yamal LNG Cooperation

Russia's second largest gas producer Novatek has confirmed that it is in talks with several companies, including EDF, for cooperation for LNG on the Yamal Peninsula.

Speaking to Reuters news agency yesterday, a spokesman for Novatek said that the company was in talks with several companies over cooperation on the project, with a final investment decision (FID) expected by the end of the year.

"We are in talks about adding a number of companies, including EDF, to Yamal LNG," the spokesman said.

A spokeswoman for EDF also confirmed that the talks were ongoing but said the talks were at an early stage.

"The talks are very preliminary and no decision has been taken yet," she told the news agency.

The talks come in the same week as Novatek and Russia's largest gas producer Gazprom finalised an agreement to increase cooperation on the Yamal Peninsula. On Tuesday of this week, the two companies signed a Memorandum of Cooperation (MoC) to increase production from three fields on the Yamal prospect, the Severo-Tambeyskoye, Zapadno-Tambeyskoye and Tasiyskoe fields. If successful, the deal would see the two companies produce up to 20 billion tonnes of liquefied natural gas a year.

This increased production will help to bring the total LNG produced to a planned 60 billion tonnes a year, up from the current output of 10 billion cubic tonnes.