MOSCOW: Russia's No.2 gas producer Novatek and France's Total said on Wednesday they recommended their gas venture in the Arctic Yamal peninsula call for long lead time equipment supply tenders as the partners seek to finalise its business plan.
The venture, Yamal LNG, which aims to start producing liquefied natural gas in 2016, has delayed constructing a final business plan to next year, after initially expecting to make the final investment decision (FID) before the end of this year.
The FID is crucial to kickstarting the project, which would be Russia's second LNG-producing plant after the Gazprom -led project in the Pacific island of Sakhalin.
Total has 20 percent in Yamal LNG and Novatek the rest, while the partners may invite a third party to the project.
The companies also said the bidding process to award the engineering procurement and construction (EPC) contract for the LNG plant - another important step to secure the project's future - "is progressing according to the schedule".
"The bidders' proposals will be received in December 2012, which will allow to start development of the detailed design of the LNG plant in early 2013," they said.
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