Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Natural Gas

Yamal LNG now contracted to sell 100% of future LNG output: Novatek

Agriculture | Energy | Coal | Electric Power | LNG | Natural Gas | Oil | Metals | Steel | Petrochemicals | Shipping

Commodities 2020

LNG | Natural Gas | NGL

Platts LNG Alert

Capital Markets | Commodities | Electricity | Energy | LNG | Natural Gas | Shipping | Leveraged Finance & High Yield | Materials | Building & Construction | Financial Services | Banking | Infrastructure | Structured Finance

Infrastructure Summit

Oil

Iran's new budget has Russian loan, US sanctions continuing in new year

Yamal LNG now contracted to sell 100% of future LNG output: Novatek

Amsterdam — * Feedstock cost just $0.40/Mcf: Gyetvay
* First train 65% complete, total project 'over 50%'
* Eyeing new neighboring LNG plant 'of same size'

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The partners in the planned Yamal LNG project in Russia have now contracted to sell 100% of its future output, a senior official from operator Novatek said Monday.

Speaking at the Flame conference in Amsterdam, Novatek deputy chairman Mark Gyetvay said the project was now fully financed to completion following the finalization of a loan from China at the end of April.

"We are fully financed throughout the rest of the project and 100% sold on LNG," Gyetvay said.

Article Continues below...

He added that train 1 was now 65% complete, and the whole three-train project more than 50% complete.

The three trains are expected to produce 16.5 million mt/year of LNG, with the first cargo set to ship in the second half of 2017.

Gyetvay said Yamal LNG was "very competitive" with other LNG projects globally, not least given the very low feedstock and other costs.

He said the feedstock cost was just $0.40/Mcf ($0.38/MMBtu), and total production cost "a little under" $3/Mcf.

"Our costs of feedstock are quite low," he said.

"We're able to compete globally," he said, adding that the project was on budget to come in at a little under $27 billion.

NEW FACILITY

Gyetvay said Novatek was also looking at the possibility of building a brand new LNG facility on the nearby Gydan Peninsula to the east of Yamal.

"Right now we're studying the idea of expanding -- we're looking at developing a whole new LNG project on the Gydan Peninsula," he said.

The project, he said, would be of the same size as Yamal LNG -- though it would depend on the cost structure.

Novatek secured licenses for the Geofizicheskoye and Salmanovskoye (Utrenneye) fields on the Gydan Peninsula in September 2011 and they are valid through 2031.

Proven reserves at Geofizicheskoye are an estimated 126 Bcm and at Salmanovskoye (Utrenneye) 260 Bcm.

The company carried out a full-scale exploration program in the license area in 2014.

--Stuart Elliott, stuart.elliott@spglobal.com

--Edited by Maurice Geller, maurice.geller@spglobal.com