Japan and Indian groups may split 10% in Yamal LNG plant: report

Novatek, which controls 60% of the Yamal project, wants to sell almost 10% to retain controlling stake

Two groups of Japanese and Indian companies may take a combined stake of almost 10% in Russia's Yamal liquified natural gas (LNG) project, which would benefit from broader access to Asian markets from the sale, a newspaper reported.

Russia's top non-state gas producer Novatek controls 60% of the Yamal project, which plans to produce 16.5 million tonne of LNG by 2018, and has said it wants to sell almost 10% to retain a controlling stake.

Citing unnamed sources close to the talks, Vedomosti business daily reported on Thursday that Novatek may split the 10% minus one share on offer between the Indian and Japanese consortiums.

 

It said companies involved were Japan's Mitsui and Mitsubishi Corp, and an Indian group involving ONGC Videsh , Indian Oil Corp and Petronet LNG - names that had been previously reported in Russia as being interested in the remaining stake.

A source at ONGC Videsh said that he was aware that about 9% is left for sale. "But nothing has been decided on that," he added.

Mitsui and Mitsubishi were not immediately available for comments. A spokesman at Novatek declined to comment.

France's Total owns 20% of the Yamal project, while another 20% is controlled by China National Petroleum Corp (CNPC).

Russia plans to double its share of the global LNG market to 10% by 2020, as it seeks to diversify its energy exports to Asian countries away from Europe where demand for Russian gas is sluggish.

Vedomosti said a Japanese delegation is expected to visit Moscow between December 25 and 27 to sign a deal on the Yamal stake.