SINGAPORE (Reuters), – Chinese state-owned energy companies have created task forces in recent weeks to examine their multibillion-dollar investments in Russia. Russia is a key oil and gas supplier for Beijing. As a result of mounting Western sanctions, they are at risk of losing their lucrative business with the country’s resource-rich neighbor.

Sources with direct knowledge said that China’s three largest state oil companies, Sinopec (NYSE :), China National Petroleum Corp CNPC and China National Offshore Oil Corp CNOOC (NYSE 🙂 – had been assessing the effects of sanctions on multi-billion-dollar investments in Russia since Russia invaded a month back.

These are the key investments made by these three companies or their listed entities, based upon company reports and Reuters reports.

Arctic LNG 2

China’s CNOOC Ltd CNPC, and Novatek agreed in 2019 that they would buy a 20% share in Arctic-2 liquefied project worth $25.5 million.

Novatek has a 60% stake in Arctic LNG 2, while TotalEnergies holds 10% and Japan Arctic LNG – Mitsui & Co and state-run JOGMEC – with the final 10% stake.

Project 19.8 Million Tonne Per Year (tpy), one of the most important in the world is scheduled to start exporting LNG next year. Second and third train will be available by 2024 and 2026.

According to a newspaper, Japan and France had stopped new investments in the project.

Yamal LNG

CNPC purchased a 20% share in Yamal LNG for $27 billion in 2014. This was another Russian LNG export plant in the Arctic run by Novatek.

Novatek has 50.1% of the 16.5million tpy project. It began operations in 2017 and was completed in 2017. TotalEnergies has 20%, while China’s government-backed Silk Road Fund is 9.9%.

Amur Gas Chemical Complex

Sinopec holds 40% and has invested around $250m in the $10billion project managed by Sibur, Russia’s largest petrochemical company.

Sibur stated that in December, the Amur GCC secured $9.1 Billion loans. This included $2.6 billion from foreign banks, as well as $6.5 billion from Chinese or Russian banks.

Amur will begin producing polypropylene and polyethylene in 2024. It is targeting China as its key market.

Sibur

China’s Silk Road Fund, which is controlled by the state of China, bought 10% stakes in Sibur in 2016, after Sinopec purchased 10% at the end 2015 according to Chinese media Caixin.

Sakhalin-3 Veninsky Oil Project

Sinopec and Rosneft, the Russian oil giant, agreed to explore Sakhalin-3 Veninsky during Hu Jintao’s 2005 visit to Moscow. It became China’s first energy project in Russia.

As of 2007, Sinopec held 25.1% interest in the oil-project, which was controlled by Rosneft.

In 2009, 49% of Russia’s Udmurneft, also owned by Rosneft, was held by Sinopec. This was at the time Sinopec’s biggest oil-producing asset.

Beijing Gas

In June 2017, Beijing Gas Group Co, the dominant natural gas distributor for the Chinese capital Beijing, closed a deal to pay $1.1 billion for a 20% stake in Rosneft subsidiary Verkhnechyonskneftegaz, which produces oil and gas in East Siberia.