Saudi Aramco, RDIF, Mitsui Consider Acquiring Novatek’s LNG Stakes

Saudi Aramco, RDIF, Mitsui Consider Acquiring Novatek’s LNG Stakes

Saudi Aramco, Russia’s sovereign wealth fund RDIF, and Japan’s Mitsui are in talks to acquire stakes in Novatek’s Arctic LNG 2 project, sources familiar with the talks told Reuters.

“Mitsui, Saudi Aramco, and RDIF are interested in buying a stake in Arctic LNG 2, but there is also an interest from South Asia,” one of the sources said.

Currently, Novatek acquires 90% of the project’s stakes, while Total owns the remaining 10%.

Novatek is expected to offer 30% of its stakes to be owned by other investors. However, the Russian company may offer more stakes, taking into consideration it cannot acquire less than 50% to keep controlling the project.

The $25.5 billion plant will have a production capacity of around 19.8 million tons and is expected to start production in 2022-2023.

The companies size of investments in the project is not decided yet and talks continue. Aramco declined to comment.

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