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Project Insights

China-Russia energy ties deepen with Arctic LNG 2 farm-in

Novatek’s sale of a 20% stake in the Arctic LNG 2 project to CNOOC and CNPC will allow the Chinese NOCs to participate in an attractive world-scale liquefaction project Novatek’s sale of a 20% stake in the Arctic LNG 2 project to CNOOC and CNPC will allow the Chinese NOCs to participate in an attractive world-scale liquefaction project.
By Colin Shek 26 April 2019 Asia Pacific / LNG 0 34169
Novatek's Yamal LNG project during its construction phase. (Novatek)

China’s two biggest LNG buyers have agreed to each take a 10% stake in Novatek’s proposed 19.8 mtpa Arctic LNG 2 project. The Chinese backing puts the three-train facility firmly on course for an FID this year and will ramp up pressure on other LNG exporters targeting the Chinese market.

Novatek announced on Thursday that it had signed binding agreements with subsidiaries of China National Offshore Oil Corp. (CNOOC) and China National Petroleum Corp. (CNPC) for them to acquire the...