The Australian: Rosneft poised for Arctic LNG stake

Russian state-owned energy giant Rosneft is poised to take control of a new Arctic Circle LNG project planned for an area of northern Russia fronting the Barents Sea.

The $4 billion development, known as Pechora LNG, is projected to produce 2.6 million tonnes a year of LNG by 2018, with output potentially growing to as much as 10 mtpa in the following decade.

Pechora is now owned by the Moscow-based investment company Alltech Group, headed by Dmitry Bosov, a Bauman Moscow State Technical University economics graduate who hails originally from Barnaul in Western Siberia.

Under a framework agreement reached in May this year, Rosneft will take a 50.1 per cent stake by September 1 in a joint venture to develop the Pechora LNG project. Terms have not been disclosed, but Russian media reports suggest Rosneft will pay about $100 million for majority control.
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