3 Apr 2019 14:52

Saudi Aramco could buy less than 30% stake in Arctic LNG 2 - Novatek CFO

SHANGHAI. April 3 (Interfax) - Saudi Aramco says it is prepared to buy a 30% stake in Arctic LNG 2 but is more likely to buy less than that, Novatek CFO Mark Gyetvay said.

"I don't think that if Saudi Aramco buys 30% of Arctic LNG 2 at a reasonable price that this will be a problem, but I don't think they'll buy 30%. There'll be no problems [if there's one major partner] but if there's a more diversified range of partners that would give us the opportunity to supply LNG to various markets," Gyetvay told reporters on the sidelines of the LNG2019 summit in Shanghai.

"You'll recall that the situation with Yamal LNG differs the situation with Arctic LNG 2. With Arctic LNG 2 there'll be an equity offtake, while with Yamal LNG, the gas was sold by a joint company, Yamal Trade," he said.

"We no longer control where our partners will sell LNG from Artic LNG 2. Novatek plans to sell half the LNG from its share of Arctic LNG 2, that is around 6 million tonnes per year, in spot deals," he said.

Saudi Energy Minister Khalid Al-Falih, the chairman of Saudi Aramco, has said the company is prepared to buy 30% of Arctic LNG 2, while Novatek is ready to consider such an offer "if the terms are good," Novatek chief Leonid Mikhelson has said.

Novatek has already sold 10% of the project to France's Total and wants to retain 60%. Talks are also being held with companies from China, Japan, Korea and Thailand.