Russia Offers India Stake in Yamal LNG Project

Russia has offered India a stake in the Yamal LNG project, Press Trust of India reported Sunday citing sources.

The offer of stake in JSC Yamal LNG was made when Indian oil minister Dharmendra Pradhan visited St. Petersburg last month. Petronet LNG is studying the offer, sources said adding other state-owned firms like Indian Oil Corp (IOC) may join in later, Press Trust added. 

(Image Credit: Novatek)

In 2013, Novatek has offered 9 percent stake in the project to a consortium of Petronet, IOC and ONGC Videsh Ltd. However, the consortium rejected the offered calling it unattractive.

Currently, shareholder structure Yamal LNG is Novatek (50.1 percent), Total (20 percent), CNPC (20 percent) and Silk Route Fund (9.9 percent).

The 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. According to estimates, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2014 were appraised at 926 billion cubic meters of natural gas. The project is currently at the active construction stage.

Shardul Sharma