Russia’s Novatek is close to deal with Saudi Aramco on its Arctic LNG 2 project, says CEO

Leonid Mikhelson made the comments at an OPEC member meeting in Baku.

By Reuters - March 19, 2019
Novatek Chairman of the Management Board Leonid Mikhelson takes part in a signing ceremony on the sidelines of the Russian Energy Week international forum in Moscow, Russia October 3, 2018. (Sergei Karpukhin / Reuters)

MOSCOW — Leonid Mikhelson, chief executive of Russian gas giant Novatek, said on Sunday he had discussed the company’s Arctic LNG 2 project with Saudi oil minister Khalid al-Falih and that a deal could be expected soon.

“We are in talks with Saudi Aramco (on the Arctic LNG 2 project). I think we will get something concrete in coming months,” Mikhelson said, adding that he did not expect global liquefied natural gas (LNG) prices to change after the project’s launch.

Speaking on the sidelines of a meeting of OPEC members and other major oil exporters in Baku, Mikhelson also said that the so-called ‘gas OPEC’ — a loose organization of global leading producers of natural gas — would strengthen on the global energy markets.

Reporting by Vladimir Soldatkin.