Novatek won't change plans, including for Yamal LNG, due to sanctions - CEO

Novatek does not intend to alter its plans after being included in Western sanctions, the gas producer's CEO, Leonid Mikhelson, said at a meeting with Russian Prime Minister Dmitry Medvedev.

Novatek does not intend to alter its plans after being included in Western sanctions, the gas producer's CEO, Leonid Mikhelson, said at a meeting with Russian Prime Minister Dmitry Medvedev.

"I think inclusion in the sanctions list will not force us to adjust our plans," Mikhelson said.

"Our financial state and investment ratings have been preserved. Everything's going to plan," he said.

This includes the Yamal LNG project, Mikhelson said. "All orders have been placed and contracts have been signed for nearly all the future liquefied gas," he said.

This is Novatek's biggest project in terms of fundraising, he said. "We're currently engaged in raising outside funding," he said. "In the first and second quarters we did this with our Russian banks. We're confident we'll be able to raise the necessary volume of funding," he said.

Mikhelson said construction was in full swing and that more than 200 billion rubles had already been funded, with another 80 billion rubles to come by the end of the year.

"All this makes us confident we'll commission [the plant] on time, despite the sanctions," Mikhelson said.

He also said his company was working on a concept for an LNG-2 project, "using the same resource base that we received four years ago."

"Everything will progress within the planned timeframe," he said.

Regarding other projects, Mikhelson said additional income was generated this year, despite the sanctions.

Yamal LNG involves development of the South-Tambeyskoye field and construction of a natural gas liquefaction plant with capacity to produce 16.5 million tonnes of LNG and 1 million tonnes of gas condensate a year. The LNG plant will have three lines, each with capacity to produce 5.5 million tonnes a year, with the first scheduled for launch in 2017.

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