Russia's Federal Antimonopoly Service gave preliminary approval to the sale of a 20% stake in Yamal LNG to China's CNPC, according to a statement on the website of the competition authority.
Earlier, this deal was approved by the Government Commission on Monitoring Foreign Investment.
It will be recalled that NOVATEK and China National Petroleum Corporation (CNPC) concluded an agreement on the purchase of a 20% equity share in the Yamal LNG project by CNPC in September 2013. Following completion of the deal, the shareholder structure of Yamal LNG will be as follows: JSC NOVATEK (60%), Total S.A. (20%) and CNPC (20%). NOVATEK estimates the 20% stake in the Yamal LNG project intended for sale to CNPC at RUB 24.3 billion.
The Yamal LNG project provides for the construction of a liquified natural gas (LNG) production facility with a capacity of 16.5 million tonnes of LNG a year at the Yuzhno-Tambeyskoye gas field. The gas field's PRMS-compliant reserves as of December 31, 2012 totaled 907 billion cubic meters of gas. The project provides for the construction of transport infrastructure including a sea port and an airport near the Sabetta settlement in the north-eastern part of the Yamal peninsula.