Novatek Assesses Selling 9% Stake in Yamal LNG Project - CFO

Novatek Chief Financial Officer Mark Gyetvay said that the company is currently evaluating whether to sell a nine percent stake in the Yamal liquefied natural gas (LNG) project.

HOUSTON (Sputnik) — Russia’s major gas producer Novatek is currently evaluating whether to sell a nine percent stake in the Yamal liquefied natural gas (LNG) project, Novatek Chief Financial Officer (CFO) Mark Gyetvay said on Wednesday.

"We have always said it [selling shares in Yamal LNG] is on the table for consideration but were waiting for credible offer. We are evaluating the situation right now," Gyetvay said on the sidelines of an international energy conference in Houston, Texas.

The Yamal LNG project is one of the largest industrial undertakings in the Russian Arctic, and is expected to have a capacity of 16.5 million metric tons of gas a year.

"We [Novatek] need to maintain majority control because its [the project’s] strategic license is in Russia. One of the options we had was to sell an additional 9 percent stake," Gyetvay added.

Novatek CFO also said on Wednesday that the company is expecting to sign agreements with Chinese banks to finance the Yamal LNG project by July 2015.

The project ensures production and marketing of the Russian Arctic’s vast natural gas reserves and has involved the construction of a major new maritime route for transporting liquefied natural gas to Europe and Asia.