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    Novatek in line for new gas fields: press


Novatek is effectively the only contender for the fields.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Corporate, Exploration & Production, Political, News By Country, Russia

Novatek in line for new gas fields: press

Russia will auction off rights to two gas fields on the Gydan Peninsula in September, the country's natural resources ministry told RIA Novosti on July 22, and the terms of the contest effectively rule out all bidders but Novatek.

The Arkticheskoye and Neitinskoye fields are situated near Novatek's Obsk LNG project. Obsk LNG was expected to produce 5mn metric tons/year of LNG, although Novatek is considering reconfiguring the project to produce hydrogen, ammonia and methanol.

The starting price for bids for the Arkticheskoye field is 9.9bn rubles ($130mn). The field holds 276bn m3 of C1+C2 gas resources according to Russia's classification system. Neintinskoye is on offer for a minimum of 2.1bn rubles and is estimated to hold 60.3bn m3 of C1+C2 gas.

Only companies that operate liquefaction facilities in the Yamalo-Nenets region are permitted to take part in the auctions, which leaves Novatek as the only contender. Bidding will take place on September 8.