Korean concern KOGAS became interested in the project "Arctic LNG"

Novatek plans to reduce its stake in the project to 60%. At the same time, without the financial and tax support of the state, this project is not consistent.
A new partner of NOVATEK on the next LNG project "Arctic LNG" can become Korean KOGAS, one of the largest buyers of liquefied gas in the world. The companies signed a memorandum of cooperation on this project, as well as regarding the possible entry of KOGAS as a shareholder into the LNG transshipment terminal in Kamchatka. At the moment, NOVATEK has already sold 10% of the French Total to the Arctic LNG and is looking for partners for another 30%.

NOVATEK and KOGAS signed a memorandum, according to which a South Korean company can become a shareholder in the Arctic LNG project, as well as the future LNG terminal in Kamchatka. "The signed memorandum fixes the parties' intentions to consider the opportunities for KOGAS to enter the Arctic LNG 2 project and acquire LNG from the project, participate in the transshipment project in Kamchatka and other infrastructure projects, and develop cooperation in the field of LNG trade and logistics optimization, including swap operations" , - the message says NOVATEK.

The signing took place on the margins of Vladimir Putin's meeting with South Korean President Mun Zhe In. According to Mr. Putin, energy was the central topic of the talks. "Priority attention was paid to energy, which is a key area of ​​bilateral cooperation," he said.

"Arctic LNG" is NOVATEK's project for the construction of a gas liquefaction plant on the Gydan Peninsula with a capacity of 19.8 million tons. The first line of the plant is planned to be launched in 2023, at full capacity it will be released in 2025. In November, NOVATEK sold 10% of this project to its long-standing partner, Total, for $ 2.55 billion. NOVATEK plans to sell an additional 30%, presumably in equal shares to three different partners, leaving 60% of the project. In addition to KOGAS, the main interest is Saudi Aramco and the Chinese CNPC.

Transshipment in Kamchatka is needed by NOVATEK in order to minimize the number of expensive LNG tankers of high ice class for the passage along the Northern Sea Route in an easterly direction. According to the plan, ice-class tankers will deliver LNG to the ice-free waters of Petropavlovsk-Kamchatsky, from where LNG will be exported by ordinary LNG tankers. The launch of the terminal will be synchronized with the launch of the Arctic LNG.