Novatek OK to Commission Yamal Train

Russian independent producer Novatek has received approval from the government to commission the first of its three LNG trains at Yamal along with the 58 gas wells, it said November 29. Each train has the capacity to produce 5.5mn metric tons/year and the first delivery is expected this year. It did not say which agency had approved it.

The other two trains are ahead of schedule, with no date given in the statement. In July, Mikhelson said the other two trains would be earlier than planned, the second by up to three months and the third by up to nine months.

The $27bn, 16.5mn mt/yr project enjoyed Russian and Chinese government support, and is a landmark in that when operational, it will be the first time that sizeable volumes of gas will have left Russia from a project that has had nothing to do with export monopoly Gazprom. Earlier discussions about exports of Yamal LNG involved Gazprom acting as an agent, thereby preserving the formal relationship. Gazprom is however a minority shareholder in Novatek.

Novatek's original major partner and Yamal LNG long-term offtaker is French Total, whose then CEO Christophe de Margerie took the decision to buy up to 18% stake in the private Russian firm. The first LNG tanker commissioned for the project bears his name.