Mitsui, JOGMEC join Arctic LNG-2

Laxman Pai
Tuesday, July 2, 2019

Japanese trading house Mitsui & Co and state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) have signed a sales and purchase agreement with Russia’s Novatek for a 10% participation interest in the Arctic LNG 2 project.

The share will be acquired through the Dutch Company, Japan Arctic LNG B.V., in which Mitsui has invested jointly with JOGMEC. The equity ratio of JOGMEC and Mitsui will be set at 75 percent and 25 percent respectively.

The project will develop natural gas and liquefaction facilities with a production capacity of 19.8 million tonnes per year from the conventional onshore gas field located on the Gydan Peninsula within the Arctic Circle, north of the Russian Federation.

Novatek commenced production at the nearby Yamal LNG project in 2017, and this Project will be the company’s second LNG project in the Arctic Circle in Russia. Novatek’s estimate of the total development cost is currently around $ 21-23 billion.

"After participation and following a final investment decision with our partners, the project plans to commence production of LNG from around 2023. LNG from the Project will be delivered mainly to Asia and Europe via the Northern Sea Route," said Mitsui & Co.

Other partners of the Project are a subsidiary of the French company Total S.A, a subsidiary of China National Petroleum Corporation (CNPC), and a subsidiary of China National Offshore Oil Corporation Limited (CNOOC) with a 10% stake each.

Mitsui's business activities in the LNG industry began with participation in a LNG project in Abu Dhabi in the 1970s.

" Since then we have participated in LNG projects in various parts of the world, including Australia, Qatar, Oman, Russia, Indonesia, Equatorial Guinea, the United States and Mozambique. Our involvement in these projects has spanned entire value chains, from LNG production and transportation to marketing, " said a press release from trading company.

"By using our accumulated knowledge of the LNG business and based on our relationships with gas-producing countries and business partners, we will continue contributing to the provision of resources to ensure stable supplies of energy to Japan and other countries through further expansion of the LNG business," it said.

Categories: People & Company News Energy LNG Investment

Related Stories

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Woodside Inks Long-Term LNG Supply Deal with China Resources

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

European LNG Imports Up with Asian Influx

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Sembcorp Signs 10-Year LNG Supply Contract with Chevron

TVO Selects Collins to Head Australian Ops

Current News

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Keel Laying for Wind Flyer Trimaran Crew Boat

MODEC Gets Shell’s Gato do Mato FPSO Ops and Maintenance Job

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com