OREANDA-NEWS. April 17, 2014. The LNG complex now under construction on the Arctic Yamal peninsula will be put into operation in three stages (in 2017 and the following years), each with the capacity of about 5.5 million tons a year.

The JSC "Yamal LNG" for 60 % belongs to Russian company "Novatek", for 20% to French "Total", and for another 20% to Chinese "CNPC". Now there appeared some new information on decisions the shareholders made about the planned production.
 
It is supposed that "Novatek" will annually buy out some 3 million tons of liquefied gas and sell it through its Singapore subsidiary "Novatek Gas & Power Asia". "Total" is ready to be responsible for annual 4 million tons for the period of 24 years. 3 million tons of LNG will be sold by "Petrochina" (the subsidiary of "CNPC"), and 2.5 million tons will be purchased by the Spanish "Gas Natural Fenosa", reports Vedomosti.
 
In his January interview the chairman and major shareholder of "Novatek" Leonid Mikhelson said that "Yamal LNG" contracted 75-78% of the plant's capacity. "We have already concluded the main contracts for the LNG supply. The remaining 3.5 million tones are the subject of negotiations with potential buyers," said Mr. Mikhelson. "Apart of that, "Novatek" still intends to sell up to 10% of "Yamal LNG" to one or several foreign partners. We consider proposals of Japanese companies "Mitsui" and "Mitsubishi", the companies from India "ONGC Videsh", "Indian Oil Corp.", and "Petronet LNG". Also we think of selling our shares to join fund of "Russian Fund of Direct Investment" and "China Investment Corporation"… "Novatek Gas & Power" plans to supply LNG to the Asia and Pacific market, while "Total" will be working both there and in Europe."
 
At present more than 70% of the world LNG comes to Asia, most of it to Japan and South Korea. The highest growth potential, though, belongs to the China market. The prices for LNG widely differ. For example, the current liquefied natural gas import price in Japan exceeds USD16 per thermal unit (roughly the energy equivalent of 1.000 cubic feet of natural gas), while in the US it is a little more than \\$ 4, and due to this year's mild winter it didn't rise above USD 11.6 in Europe.