We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 13 Nov 2011 07:36 PM

Font Size

- Aa +

Qatar in talks for stake in Arctic LNG project

Gulf state's energy chief says 'very much interested' in South Tambey investment

Qatar in talks for stake in Arctic LNG project
Qatar is in negotiations to take a stake in an Arctic liquefied natural gas (LNG) project. (Photo for illustrative purposes only)

Qatar is in negotiations to take a stake in an Arctic liquefied natural gas (LNG) project under development by number-two Russian gas producer Novatek, Qatar's energy minister said on Sunday.

The Yamal project will develop the South Tambey field located in the Arctic area of the Yamal peninsula.

"Qatar is very much interested in investment generally in oil, gas and petrochemicals. Yamal is an important project and we are really interested in participating in its development," the minister, Mohammed al-Sada, told reporters on the sidelines of an event on Sunday.

"We are in active discussions and negotiations with our partners," Sada said.

Resources from the condensate and gas field are expected to produce 5 million tonnes of LNG per year when production starts in 2016 and reach 15 million tonnes per year in 2018.

Russia's top non-state gas producer Novatek last week said it sold 20 percent of the Yamal LNG project to French major Total for $425m.

Two or three more foreign partners could join Total as investors in Yamal, Novatek's chief executive said in October. .

Shell, Statoil, Qatar Petroleum and ONGC are all considered potential partners in the project.

"The opportunity of Qatar joining to Yamal has been discussed. Our country is committed to developing long-term gas production and will be a major actor in the LNG market in five to six years," Russian Energy Minister Sergei Shmatko told a news conference in Qatar on Sunday.

Novatek has been experimenting with the northern sea route, using icebreakers to clear a path for tankers to the growing markets of Asia.

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.