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Japanese consortium Mitsui and Mitsubishi refused to participate in the project "Novatek"

The Japanese consortium Mitsui and Mitsubishi withdrew from negotiations with Novatek, which is looking for a buyer for 10% minus 1 share of Yamal LNG, Vedomosti newspaper reported, citing two sources close to both Japanese companies.

Under the terms of the contracts, Total will purchase 4 million tons of LNG from Yamal LNG, 3 million tons - from PetroChina, Spanish Gas Natural Fenosa - 2,5 million, Novatek's trading subsidiary - 2,86 million tons. “We are negotiating for the remaining volume, we want long-term contracts for a period of 20 years or more,” said Yamal LNG chairman of the board Yevgeny Kot.

In 2013-2014, Mitsui and Mitsubishi carried out an assessment of the project, on the basis of which they were supposed to make a decision to buy a stake in Yamal LNG, explained a newspaper source close to one of the Japanese companies. The reason for withdrawal from the negotiations could be the rise in the price of the project.

The cost of the project increased compared to the previous estimates of 35%, to 27 billion dollars. And the commissioning of the first line of the plant was shifted from 2016 to 2017 year.

The Yamal LNG project provides for the construction of a plant for the production of liquefied natural gas with a capacity of 16,5 million tons of LNG per year at the resource base of the South-Tambeyskoye field. The proven and probable gas reserves of the field as of 31 December 2013 of the year according to PRMS standards are estimated at 927 billion cubic meters. NOVATEK owns 60% of the project, CNPC and French Total - by 20%.

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