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

In this list
Natural Gas

Japan's Mitsui, JOGMEC agree to take 10% stake in Arctic LNG 2

Commodities | Energy | Electric Power | Renewables | Natural Gas

Hydrogen: Beyond the Hype

LNG | Natural Gas | NGL

Platts LNG Alert

Electric Power | Renewables | LNG | Infrastructure Utilities

Caribbean Energy Conference, 21st

Electricity | Coal | Emissions | Thermal Coal | Electric Power | Nuclear | Renewables | Natural Gas | Metals

Analysts see EU carbon prices at Eur56-Eur89/mt by 2030

Oil | Petrochemicals

Insight from Dubai: Middle East seeks refuge in petchems amid bleak oil demand forecasts

Japan's Mitsui, JOGMEC agree to take 10% stake in Arctic LNG 2

Japan's Mitsui and Japan Oil, Gas and Metals National Corporation (JOGMEC) agreed to take a 10% stake in Novatek's Arctic LNG 2 project, Novatek said Saturday.

Not registered?

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

Register Now

"The participation in the project also provides for the long-term LNG offtake of approximately 2 million mt/year by the Japanese partners," Novatek said. The company did not disclose other terms including final price, but Russian president Vladimir Putin said that the investment would be around $3 billion. He was speaking during a press conference televised on the state-owned Russia 24 channel.

The companies plan to close the agreement "in the nearest future," subject to regulatory approvals, Novatek said.

"Japan has 50 years of experience with importing LNG and is one of the largest LNG consuming countries. Moreover, Japanese companies have extensive experience in implementing LNG projects as well as marketing LNG around the world. The entry of Japanese partners into Arctic LNG 2 will contribute to its successful implementation," Novatek CEO Leonid Mikhelson said.

Novatek has already reached binding agreements with two Chinese companies -- CNPC subsidiary China National Oil and Gas Exploration and Development Co., and CNOOC -- for each to buy a 10% stake in the project. France's Total also bought a 10% stake in the project earlier this year.

Novatek said previously it planned to retain a 60% stake in the project, while selling the remaining interest to foreign partners to share financial risks and secure markets for its future LNG. It is planning to make a final investment decision on the project in the third quarter.

Plans for Arctic LNG 2 include 3 trains with capacity of 6.6 million mt each, or a total of 19.8 million mt. Novatek plans to commission the first train in 2023, the second train in 2024, and the third train in 2025, before reaching full capacity in 2026.

--Rosemary Griffin, rosemary.griffin@spglobal.com

--Edited by Claudia Carpenter, claudia.carpenter@spglobal.com