The partners in the planned Yamal LNG project in Russia have now contracted to sell 100% of its future output, a senior official from operator Novatek said Monday.
Speaking at the Flame conference in Amsterdam, Novatek deputy chairman Mark Gyetvay said the project was now fully financed to completion following the finalization of a loan from China at the end of April.
"We are fully financed throughout the rest of the project and 100% sold on LNG," Gyetvay said.
He added that train 1 was now 65% complete, and the whole three-train project more than 50% complete.
The three trains are expected to produce 16.5 million mt/year of LNG, with the first cargo set to ship in the second half of 2017.
Gyetvay said Yamal LNG was "very competitive" with other LNG projects globally, not least given the very low feedstock and other costs.
He said the feedstock cost was just $0.40/Mcf ($0.38/MMBtu), and total production cost "a little under" $3/Mcf.
"Our costs of feedstock are quite low," he said.
"We're able to compete globally," he said, adding that the project was on budget to come in at a little under $27 billion.
NEW FACILITY
Gyetvay said Novatek was also looking at the possibility of building a brand new LNG facility on the nearby Gydan Peninsula to the east of Yamal.
"Right now we're studying the idea of expanding -- we're looking at developing a whole new LNG project on the Gydan Peninsula," he said.
The project, he said, would be of the same size as Yamal LNG -- though it would depend on the cost structure.
Novatek secured licenses for the Geofizicheskoye and Salmanovskoye (Utrenneye) fields on the Gydan Peninsula in September 2011 and they are valid through 2031.
Proven reserves at Geofizicheskoye are an estimated 126 Bcm and at Salmanovskoye (Utrenneye) 260 Bcm.
The company carried out a full-scale exploration program in the license area in 2014.
