Japanese trading house Mitsui & Co. and Japan Oil, Gas and Metals National Corporation (JOGMEC) have endorsed a sales and purchase charter with Russia’s Novatek for a 10% participation interest within the Arctic LNG 2 venture.
The share shall be acquired via the Dutch Company, Japan Arctic LNG B.V., by which Mitsui has invested collectively with JOGMEC. The equity ratio of JOGMEC and Mitsui shall be set at 75 % and 25 % respectively.
The venture will develop natural gas and liquefaction facilities with a production capacity of 19.8 million tonnes annually from the conventional onshore fuel area positioned on the Gydan Peninsula within the Arctic Circle, north of the Russian Federation.
Novatek commenced production at the close by Yamal LNG venture in 2017, and this venture will be the company’s second LNG undertaking within the Arctic Circle in Russia. Novatek’s estimate of the total development expense is at the moment around $ 21-23 billion.
“After participation and following a final investment resolution with our partners, the venture plans to begin production of LNG from around 2023. LNG from the Venture will be delivered mainly to Asia and Europe by way of the Northern Sea Route,” stated Mitsui & Co.
Different partners of the Project are a subsidiary of the French Firm Total S.A., a subsidiary of China National Petroleum Corporation, and a subsidiary of China National Offshore Oil Corporation Limited with a 10% stake each.
Mitsui’s business activities within the LNG industry started with participation in an LNG project in Abu Dhabi in the 1970s.
“Since then now we have participated in LNG initiatives in varied elements of the world, together with Australia, Qatar, Oman, Russia, Indonesia, Equatorial Guinea, the U.S., and Mozambique. Our involvement in these tasks has spanned whole worth chains, from LNG manufacturing and transportation to marketing,” mentioned a press launch from trading company.
“Through the use of our amassed data of the LNG enterprise and based on our relationships with gasoline-producing countries and enterprise companions, we will proceed contributing to the provision of resources to make sure steady provide of power to Japan and different nations by way of additional enlargement of the LNG business.”