Yamal LNG Gets Go-Ahead

Russia's largest independent gas producer Novatek says it has received environmental approval for a liquefied natural gas project in the Arctic and that construction will begin soon. Yamal LNG, a joint project with France's Total, is expected to produce its first gas at the start of 2017, with output eventually reaching 16.5 million metric tons per year.

Last week, Novatek said it was in advanced talks with a number of potential clients, including China and India, on selling LNG supplies from the Arctic project.

Novatek is hoping that Moscow will end Gazprom's monopoly on gas exports and allow other firms to sell LNG on lucrative foreign markets. Last month, President Vladimir Putin told government officials to consider liberalizing exports so Russia's share of the global LNG market could increase from its current 3.6%.

Bloomberg reported recently that Japanese giants Mitsubishi and Mitsui & Co are interested in joining the €15.5 billion project, quoting Novatek CEO Leonid Mikhelson.