Novatek of Russia is reportedly on the brink of selling a 9.9% stake in its Yamal LNG project to a Chinese investment fund.
Russia’s Kommersant reported that a deal valued at approximately $900 million could be signed in the coming weeks. According to sources, the buyer is Chinese investment fund Silk Road.
With the deal, Novatek could be close to closing the financing for the $27 billion Yamal LNG project. The company hopes that the deal could also help seal the deal with Chinese banks, as it looking to sell another $10 to $15 billion portion.
Novatek owns a 60% stake in the project while Total and China’s CNPC each hold a 20% stake.
The production from the 16.5 mtpa project is scheduled to start in 2017.
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LNG World News Staff; Image: Novatek