(MENAFN- Gulf Times) Russia's second multibillion dollar liquefied natural gas plant in Siberia is going to be cheaper than estimated earlier.
Novatek raised the planned production capacity of its Arctic LNG 2 facility, allowing it to reduce the cost per tonne of produced fuel to less than 70% of the nearby $27bn Yamal LNG facility. Capital expenditure plans are key for Arctic LNG 2 as Novatek, which partnered with Total SA and Chinese investors at the first Siberian facility, has yet to find investors for the project.
'We will likely exceed the 30% reduction figure I gave earlier for Arctic LNG 2, Novatek's billionaire chief executive officer, Leonid Mikhelson, told reporters at the company's annual shareholders' meeting in Moscow. 'It's going to happen for many reasons, including higher production capacity.
The plant's capacity has been finalised at 19.8mn tonnes a year, versus earlier estimates of as much as 18.3mn. That's more than 5% of total liquefaction capacity of 365mn tonnes at the end of last year. Yamal LNG capex was $1,100 to $1,200 per tonne, Mikhelson said.
The Russian company's own options are limited by sanctions that prevent Novatek from accessing US debt and equity markets for long-term financing, with little clarity on whether the current tensions between the Kremlin and the White House may at some point result in new limitations or risks for the Russian producer.
So far, Novatek does not aim to speed up talks with potential Arctic LNG 2 partners, which include Saudi Arabian investors, Mikhelson said. The company also does not see any threat of new sanctions for itself and considers closer cooperation with Russian equipment manufacturers as a protection against potential technological bans, the Novatek CEO told shareholders.
MENAFN2204201800670000ID1096753444
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.