Report: Japan and Indian Groups May Split 10% in Yamal LNG Plant

Reuters

MOSCOW, Nov 28 (Reuters) - Two groups of Japanese and Indian companies may take a combined stake of almost 10 percent 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 percent of the Yamal project, which plans to produce 16.5 million tonnes of LNG by 2018, and has said it wants to sell almost 10 percent to retain a controlling stake.

Citing unnamed sources close to the talks, Vedomosti business daily reported on Thursday that Novatek may split the 10 percent 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 percent 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 percent of the Yamal project, while another 20 percent is controlled by China National Petroleum Corp (CNPC).

Russia plans to double its share of the global LNG market to 10 percent 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 Dec. 25 and 27 to sign a deal on the Yamal stake.

(Additional reporting by Katya Golubkova in Moscow, Nidhi Verma in New Delhi and Aaron Sheldrick in Tokyo; Editing by David Holmes)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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