Russian State Duma Ratifies Yamal LNG Stake Sale to China Fund

Russia’s lower house of parliament, the state Duma, on Tuesday ratified the agreement pertaining to China’s Silk Road Fund’s purchase of 9.9 percent of shares of Yamal LNG from NOVATEK.

Last week, the draft law on ratifying the protocol to the agreement between the Russian and Chinese governments on cooperation on the Yamal LNG project was submitted to the State Duma for further ratification by the Russian government.

Last month, the two parties signed a share purchase and sale agreement in relation to a 9.9 percent equity stake in Yamal LNG. The parties also signed an agreement for the provision of a 15-year loan by SRF to NOVATEK in the amount of approx. EUR 730 million for the purpose of financing of the Yamal LNG project. 

Following the completion of the deal, the shareholder structure Yamal LNG will be as follows: Novatek (50.1 percent), Total (20 percent), CNPC (20 percent) and SRF (9.9 percent).

The Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field. According to estimates, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2014 were appraised at 926 billion cubic meters of natural gas. The project is currently at the active construction stage.
 
The Silk Road Fund is a $40 billion medium- to long-term investment and development fund established in Beijing in December 2014.