Russia’s Novatek finalizes deal to sell a stake in Arctic LNG 2 to Japanese investors

Japan's JOGMEC and Mitsui & Co. will buy a 10 percent stake in the Russian gas company's second major Arctic LNG project.

By Reuters - July 1, 2019

Novatek PAO, Russia’s biggest private gas producer, has signed agreements to sell a 10 percent stake in its upcoming project to liquefy natural gas in Russia, the Arctic LNG 2, to Japan’s JOGMEC and Mitsui & Co.

The deal, previously reported by Japanese media and by ArcticToday partner High North News, was finalized after the recent G20 summit in Osaka, Japan.

Russian President Vladimir Putin, in a joint news conference held with Japanese Prime Minister Shinzo Abe Saturday, said that the Japanese investments in the project would reach almost $3 billion.

Mitsui and state-owned Japan Oil, Gas and Metals National Corp will buy the stake through a Dutch-based joint venture, in which JOGMEC owns 75 percent and the Japanese trading house the rest, Mitsui said in a statement.

Arctic LNG 2 will become the third liquefied natural gas project for Novatek, which hopes to match Qatar in the super-cooled gas production.

Novatek holds 60 percent of the yet-to-be-built Arctic LNG 2, while France’s Total SA, China National Oil and Gas Exploration and Development Company (CNODC) and CNOOC each hold a 10 percent stake in the project.