ONGC no longer interested in Yamal LNG project

State-owned Oil and Natural Gas Corp (ONGC) is no longer keen to acquire a stake in Russian natural-gas producer OAO Novatek's USD 20 billion Yamal LNG project.
ONGC Videsh Ltd, the overseas arm of India's largest oil and gas producer, along with Petronet LNG Ltd and Indian Oil Corp (IOC) was last year in negotiations with Novatek for a 9-10 per cent stake in the project.
But the company is no longer interested after it carried out a risk assessment of the project, sources in know of the development said.
OVL has not formally said no to Novatek but is not pursuing the opportunity, they said.

Yamal LNG project comprises of development of the South Tambeyskoye field with proven deposits of 1.3 trillion cubic meters of natural gas and the construction of natural gas liquefaction plant (LNG) for producing 16.5 million tonnes of LNG a year by 2018.
Sources said OVL was interested in the upstream part of the project while Petronet was keen to offtake LNG.

Russia's top non-state gas producer Novatek controls 60 per cent of the Yamal project. French energy giant Total owns 20 per cent of the Yamal project, while the remaining 20 per cent is with China National Petroleum Corp (CNPC).

Novatek wants to retain the controlling stake in Yamal LNG and had offered the Indian consortia as well as Japan's Mitsui and Mitsubishi 10 per cent minus 1 share.
OVL-IOC-Petronet were originally interested in taking up to 15 per cent stake in Yamal project, which also requires construction of an airport and port on the Arctic Ocean. But a smaller stake was available to them after Novatek in September 2013 sold a 20 per cent stake in the project to CNPC.
Total SA had in March 2011 bought 12 per cent stake in the project for about USD 4 billion. Since then, it has raised the stake to 20 per cent.

Sources said Petronet, which operates two LNG import facilities in Gujarat and Kerala, has been included in the consortium so as to give the seller the comfort of buying the liquid gas.
The Indian consortia was willing to buy 5 million tonnes a year of LNG from the Arctic project.
CNPC had pledged to purchase at least 3 million tonnes a year of LNG from Yamal.
The Yamal LNG project will comprise three LNG trains, each with a capacity of 5.5 million tonnes a year. The first train is planned to come online in late 2016, with the second and third due in 2017 and 2018, respectively.