The Yamal LNG (Liquefied natural gas) project is one of the largest Russian energy projects. However, with the current political situation between Western countries and Russia and the ongoing downfall of fossil fuel prices, the project faces tougher times. Now, a newly Chinese investment company has announced to place money in the project.
The China Insurance Investment Ltd, a firm jointly established by more than 40 Chinese insurance companies, will invest in Yamal, Reuters reports with reference to the China Insurance Regulatory Commission (CIRC). The investment firm was registered in the Shanghai free-trade zone on 5th January, daily South China Morning Post reports. The company has a registered capital of 1.2 billion yuan (EUR 165 Mio.) It is not clear how much the company now invests in Yamal. From before, the Chinese companies CNPC and Silk Road Fund hold respectively 20 percent and nine percent stakes in the project. Licenseholder Novatek owns 51 percent and French company Total 20 percent.
The Yamal LNG is the grand energy project currently unfolding in the Russian Arctic. The $27 billion gas project (EUR 25 Mrd.) includes the construction of a LNG plant based on the resources of the South Tambey field, as well as big infrastructure, including the port of Sabetta.
When in full swing, the project will deliver 16.5 million tons of LNG per year. Production is due to start in 2017. Gas delivery contracts have been made with Total (4 mill ton/year), Gas Natural (2.5 mill ton/year), CNPC (3 mill ton/year), Gazprom (3 mill ton/year) and Novatek Gas& Power (2.86 mill ton/year).
Source: The Independent Barents Observer