Russia: Key Energy Project Creates Hot Competition in the Arctic

Dec 8, 2017 | 21:57 GMT

In a move that many said would never happen, the biggest independent natural gas producer in Russia launched its much-hyped Yamal liquefied natural gas (LNG) project on Dec. 8. Russian President Vladimir Putin personally oversaw the first official loading of LNG at the Novatek facility on the Yamal Peninsula in the Siberian Arctic. Believed to hold the largest natural gas reserves in the world, some estimates claim that the Yamal's deposits could meet global demand for a decade. The $27 billion project brings online some 5.5 tonnes of LNG, which is predicted to expand to 17.5 metric tonnes over the next few years. China National Petroleum Corp., which owns 20 percent of the project, purchased the first cargo of LNG. Other key stakeholders include France's Total (with 20 percent ownership) and China's Silk Road Fund (9.9 percent). Novatek retains a 50.1 percent majority stake. In addition, Novatek is currently negotiating...

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