Energy Ministry supports use of 4 Tambey deposits for LNG project
MOSCOW. Feb 16 (Interfax) - The Russian Energy Ministry proposes using four Gazprom deposits on the Yamal Peninsula, in which Novatek had expressed interest, as a resource base for liquefied natural gas (LNG) projects.
"In the Energy Ministry's view, these four deposits need developing. Due to the fact that infrastructure for liquefying gas has already been set up in the region; ports built, work on deepening the Gulf of Ob and so on, the use of these deposits as resource bases for LNG projects could be the most effective," Energy Minister Alexander Novak told Interfax in an interview.
"Various options are currently being discussed, all the talks are on a commercial level: will these deposits be sold to Novatek, will Gazprom develop them independently, will a joint venture be established - it will depend on the economic benefits. We hope that the companies will find a mutually acceptable, win-win option," he said.
Novatek is in talks with Gazprom to acquire four strategic fields of the Tambeiskaya (Tambey) group on the Yamal Peninsula with gas reserves of 2.65 trillion cubic meters, the RBC newspaper said at the end of November, quoting a letter from Energy Minister Alexander Novak to Russian President Vladimir Putin.
RBC said that in October, Putin asked Novak to consider a request by Novatek CEO Leonid Mikhelson to the president regarding the approval of the "corporate decisions necessary" to transfer the licenses to the Severo-Tambeisky (North Tambey), Zapadno-Tambeisky (West Tambey), Malyginsky and Tasiisky blocks from Gazprom to a separate company, which Novatek would subsequently acquire.
Gazprom and Novatek thought about forming a joint venture back in 2012 based on the resources of three Gazprom fields: Severo-Tambeiskoye, Zapadno-Tambeiskoye and Tasiiskoye. The plan was for Gazprom to own 75% and Novatek 25% of the JV. The companies also planned to form a joint venture on equal footing for the Utreneye (Salamanovskloye) field, licensed to Novatek.
In September 2016, Novatek won an auction for the license to the adjacent Syadorsky block, bidding 404 million rubles. This is also part of the Tambey group with reserves of 25 billion cubic meters (bcm) gas.
Gazprom received the three fields in 2008 without a tender by government instruction, paying 10.44 billion rubles for them.
The fields are adjacent to Novatek's Yuzhno-Tambeiskoye (South Tambey) field, on the basis of which the company is building the Yamal LNG plant, with France's Total and China's CNPC and SRF among the shareholders. The pant's first train is due to launch at the end of 2017.
Novatek's Mikhelson has offered both to buy the fields and exchange them for Novatek shares.