Russia’s Novatek may sell 9% stake in Yamal LNG

Independent Russian gas producer Novatek is considering selling a 9% stake in Yamal LNG to raise finances to build a second stage of the plant, CEO Leonid Mikhelson said on May 27, Prime has reported.

“The financial plan allows us for holding a 60% stake in Yamal LNG comfortably. But Novatek does not rule out a possibility to reduce its stake to the controlling one. This step will allow us for lowering the financial burden borne by Novatek because of this project. Furthermore, a decrease of the stake in Yamal LNG to 51% is considered in the context of a possible construction of one more LNG plant which will run on the resources of our deposits on the Gydan Peninsula,” Mikhelson said.

CNPC is not interested in raising its stake, which currently stands at 20%, in the project, he said.

According to Mikhelson, Novatek does not need to borrow additional funds after it sold a 20% stake in Yamal LNG to China’s CNPC.

Novatek is also considering acquiring trading companies in Europe, the CEO said. “The company is interested in buying assets conducting gas trade in Europe,” he said.

Mikhelson said that he does not rule out a possible start of liquefied natural gas (LNG) exchange for pipeline gas between Novatek Gas & Power and GM&T. Last week a Singaporean affiliate of GM&T signed a contract for 3 million tonne annual LNG supplies from Novatek.

Copyright: Prime, 2014