Qatar holds talks to buy into Russia Yamal LNG amid tensions

Qatar, the world’s biggest exporter of liquefied natural gas, may buy a stake in OAO Novatek’s Yamal LNG project in Russia’s Arctic region, Qatar Petroleum International’s chief executive officer said.

“We are talking to them, yes,” said Nasser al-Jaidah, head of the Persian Gulf country’s state-owned energy investment company, referring to discussions about a possible stake. Qatar could contribute advice on LNG sales and market conditions, he said today at a conference in the nation’s capital Doha.

His comments came two days after Russia downgraded diplomatic relations with Qatar. Russia’s ambassador to the emirate and two employees of its embassy were injured last month in a scuffle with security and customs officials at the airport in Doha, the Moscow-based Foreign Ministry reported Dec. 5 on its official website. Russia has the world’s largest gas reserves, while Qatar’s deposits are the third-biggest, according to data from BP Plc.

Novatek, Russia’s largest non-state gas producer, is selecting foreign partners to help develop the Yamal plant, which is scheduled to start producing in 2016. Novatek Chief Executive Officer Leonid Mikhelson and fellow billionaire Gennady Timchenko sold 12 percent of the company to Total SA for about $4 billion earlier this year. They picked the French company as a strategic partner in the Yamal project.

Total, which has stakes in Qatari LNG and petrochemical plants, offered the Gulf state an opportunity to invest in Yamal, al-Jaidah said. Qatar seeks holdings in both Novatek and Yamal, Energy Minister Mohammed Al-Sada said Nov. 15.