OREANDA-NEWS. March 06, 2013. A Chinese company has expressed its interest acquiring a stake in an Arctic project to produce liquefied natural gas led by Russia's Novatek, a source close to Novatek said.

"There is interest from a Chinese company in a Yamal LNG stake," the source said, adding that Novatek Chief Executive Leonid Mikhelson was currently on a visit to China as a part of a Russian energy delegation.

The Yamal LNG project will develop the South Tambey field located in the Arctic area of the Yamal peninsula.

The condensate and gas field is expected to produce more than 15 million tonnes of LNG per year from 2018.

France's Total owns 20 percent of Yamal LNG. Novatek has said it plans to retain at least 51 percent in the project and has been looking for other partners to develop it.

France's EDF, Qatari and Indian companies have been named as potential contenders for the stake in the project.

Russia would like to become a big player in liquefied natural gas, but will face increasing competition by the middle of the decade from rising production capacity in Qatar and Australia.