Saudi Aramco to buy 30% stake in $25.5 bln Russian LNG project

Saudi Aramco, a state-owned oil company, plans to acquire a 30 percent stake in the Russian liquefaction project Arctic LNG 2 by oil and gas company Novatek.

Earlier this week, Russian Direct Investment Fund said it would invest some $5 billion in the $25.5 billion project. Saudi Aramco also said the project would become part of its gas strategy expansion.

Arctic LNG 2 is projected to produce 19.8 million tonnes per annum of liquefied natural gas in the Gydan Peninsula, northwest Siberia. The project’s start-up is scheduled for 2023, with a positive final investment decision expected next year.

French oil major Total has acquired a 10 percent stake in the project and South Korean peer KOGAS has also shown great interest in joining the partners.