NOVATEK is in talks with Qatar Petroleum and other companies on participation in the project.

Companies from outside of Russia will participate in the Yamal liquefied natural gas project, according to Yevgeny Kot, director for LNG project development for NOVATEK. Russian companies will have a 51-percent stake in the venture, and foreign energy companies will take the remaining 49 percent.

Company NOVATEK is considered to be the largest independent producer of natural gas in Russia. The company soon plans inviting foreign partners for joining in the LNG project. France’s Total has expressed interest in joining the venture, but there have not been any definite commitments as of yet. NOVATEK is also talking to companies in Qatar. In particular, Yevgeny Kot believes that the experience of the Middle Eastern nation in handling LNG is worth emulating. The country plans to add a 7.4-million-ton LNG capacity. The country will have the largest liquefied natural gas hub in the world. Qatar has the greatest experience in constructing large LNG production facilities.

The owner of a 25.1-percent stake of Yamal LNG has not yet been identified. In July of 2010, rumors circulated that the 25.1-percent stake in Yamal LNG was again sold off. At the end of the first quarter of 2010, the stake belonged to Siritia Ventures Ltd, which is a Gazprombank company based in Cyprus. By the end of the second quarter the stock changed hands to Varix Enterprises Ltd., and Gazprombank’s financial statements for 2009 showed that it sold its stake in Yamal LNG in the spring of 2009 for RUR 2.6 billion.           

NOVATEK acquired its controlling 51-percent stake in Yamal LNG from oil trader Gunvor for USD 650 million in 2009. The company also secured an option to purchase another 23.9 percent in Yamal LNG at the price of USD 450 million. NOVATEK representatives made it clear that they plan to exercise the option to bring in foreign partners into the project. In December of 2009 Gazprombank sold a blocking stake in Yamal LNG to the co-owner of Surgutex Peter Kolbin, who is a partner of Gennady Timchenko, the owner of Gunvor.   

Currently Shell and Total are the two foreign companies exhibiting the greatest interest towards the Yamal LNG venture. In June of 2010, the CEO of Total Christophe de Margerie talked to Prime Minister Putin about the possibility of acquiring a 20- to 25-percent stake in the venture. Among other possible partners in the project’s development are companies from Qatar.     

In April of 2010, Russia and Qatar signed a joint memorandum on cooperation in the oil and gas sphere. Among the projects listed in the agreement is the development of gas fields on the Yamal Peninsula. Russia and Qatar will also work together on developing projects in other countries.  

Qatar Petroleum remains keenly interested in working with Russian partners to develop the Yamal Peninsula. The Yamal LNG project is of special interest to the company.

NOVATEK entered into an agreement with Gazprom to begin LNG development on the Yamal Peninsula with the Yuzhno-Tambeiskoye field. The license for exploring the Yuzhno-Tambeiskoye field is owned by Yamal LNG. The field’s C1 and C2 reserves are estimated at 1.26 trillion cubic meters of gas and 51.6 million tons of condensate.