According to Leonid Mikhelson, CEO of Novatek and project manager of the Yamal LNG project, Western sanctions against Russia have not hurt the project’s production and commercial activity. However, Novatek and the other shareholders in the project, including France’s Total and China’s CNPC, will have to rely more on its own capital to finance the project because of the sanctions.
“We are able to increase the share of stakeholders’ financing to stick to the timetable,” Mikhelson said at a press conference a day after the company posted forecast-beating second-quarter net income, Moscow Times reports.
Investments in Yamal LNG, which is on the Arctic peninsula of the same name, have been valued at $27 billion. The project will help Russia double its share in the global LNG market by 2020 from 4.5 percent currently. The planned LNG plant will have an annual capacity of 16.5 million tons per annum based on the resources of the South-Tambeyskoye field.
Construction of the Port of Sabetta continues as planned. The port is projected to be a hub for shipment of LNG eastwards and eastwards on the Northern Sea Route. Recently 19 dredgers left Murmansk bound for Sabetta. The dredgers, which come from all over the world, are recruited by Mordraga LLC, a subcontractor of SK MOST Group, which is contractor on construction of the deep-water port, Port News writes.
