Gazprom refuses to participate in the Yamal LNG project

Gazprom has stated that it refuses to participate in the Yamal LNG project, afforded Novatek an opportunity to implement an ambitious project on construction of a LNG plant in Yamal by its own.

Gazprom and Novatek signed the memorandum on cooperation in projects in Yamal and Gydan in spring of 2012. The Gazprom’s Tambei group of deposits was chosen as a resource base of the Yamal LNG project – its gas reserves are estimated at 1.6 trillion cubic meters. At the same time, the document included unfavorable term for Novatek, in accordance with which its participation share in the project was 25%; Gazprom had other 75%. Several months ago, Novatek proposed Gazprom to divide shares in the project 50/50, but this didn’t suit the Russian gas giant and agreements were suspended.