NOVATEK Agrees to Enter India's LNG Market
The memorandum also provides for joint investment in future H-Energy LNG terminals and NOVATEK LNG projects, as well as the creation of a joint venture to sell LNG and natural gas to end consumers in India, Bangladesh and other markets. Novatek’s Executive Board Leonid Mikhelson named India one of the largest and fastest growing LNG markets. According to him, this country in the future will become one of the main sources of growth in global demand for raw materials.
Michelson spoke of Novatek’s plans to increase the share of LNG deliveries to end consumers in July. He also noted that the company could attract another investor in the Arctic LNG-2 project, reducing the share below 60%. A plant with a capacity of 19.6 million tons per year will be built on the basis of the Morning Field in the Yamal-Nenets Autonomous Area. In the base case scenario, NOVATEK planned to sell 40% of the company: Chinese CNPC and CNOOC had already received 20%, and French Total had 10%.
To whom the last 10% in the base scenario and the additional package can be sold, Novatek’s management did not specify. According to media reports, Japanese Mitsui & Co, as well as Saudi Saudi Aramco, were serious contenders for joining Arctic LNG-2. At the end of August, the head of the Ministry of Energy, Alexander Novak, said that Indian companies were interested in buying gas from the NOVATEK's Arctic LNG-2 and Arctic LNG-3 projects.
Earlier it was reported that in the future, NOVATEK plans to increase the share of LNG deliveries to end consumers, but so far has no specific goals for these volumes, Mikhelson said. A certain amount of spot deliveries should also be preserved, he added.