Russia's Novatek head says discussed gas projects with Saudi representatives

10 Décembre, 2017, 02:51 | Auteur: Anatole Charbonneau
  • Presidential plenipotentiary for the Volga Federal District Mikhail Babich

When completed, the project will include three production facilities with a capacity of 16.5 million tons a year by the start of 2019, as Russian Federation looks to surpass Qatar as the world's biggest LNG exporter. "Those who started this project took a risk but achieved a result".

"Buy our gas and you'll save oil", President Vladimir Putin told Saudi Arabia's Energy Minister Khalid al-Falih who attended the opening ceremony in Russia, Reuters reported.

It will also add to the current drama over U.S. recognition of Jerusalem as Israel's capital, which has seen Saudi Arabia - a close ally of Washington - slam Donald Trump's decision.

"Novatek, once a domestic gas supplier, becomes a global LNG player".

At a recent conference, Gazprom E&P official Nikolay Kislenko warned that Novatek's planned LNG shipments to Europe could displace pipeline exports, depriving the Russian government of much-needed tax revenue.

As corporate Russia looks to diversify away from European markets, expect the Sino-Russian energy relationship to intensify.

The first cargo from the Yamal LNG project will be shipped to Asia, Mikhelson said, giving no definite destination.

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Mr Monakov also said transportation costs were low as the plant effectively sat on a gas field.

"Together we managed to build from scratch a world-class LNG project in extreme conditions to exploit the vast gas resources of the Yamal peninsula", he said in a statement.

Mikhelson also welcomed the participation of France's Total, which owns 18.9% of Novatek and 20% in its Yamal LNG project.Novatek has one more LNG project, Arctic LNG-2, which will be implemented on the Gydan Peninsula.

The project will eventually have four processing units, known as trains, with a total capacity of 17.5 million tons a year. "That is unusual in the LNG industry".

Since its inception in late 2013, an airport and a port have had to be constructed, as well as gas reservoirs and the LNG plant itself.

The first phase of the $27 billion project was completed in December.

Lussac of Wood Mackenzie said that the coming months will show "whether the plant can operate smoothly in the harsh Arctic environment".

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