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Novatek signs agreements on LNG supply from Arctic LNG 2 with two Chinese companies

The contract with Zhejiang Energy stipulates the supply of up to 1 mln tonnes of LNG per annum for a term of 15 years, whereas the agreement with ENN Natural Gas stipulates the delivery of approximately 0.6 mln tonnes of LNG per annum within 11 years

MOSCOW, January 11. /TASS/. Novatek has signed long-term agreements on the supply of liquified natural gas from the Arctic LNG 2 project with Chinese companies ENN Natural Gas and Zhejiang Energy, the Russian company reported on Tuesday.

The contract with Zhejiang Energy stipulates the supply of up to 1 mln tonnes of LNG per annum for a term of 15 years, whereas the agreement with ENN Natural Gas stipulates the delivery of approximately 0.6 mln tonnes of LNG per annum within 11 years. The LNG will be delivered to the companies’ LNG terminals in China.

Arctic LNG 2 is Novatek’s second LNG project, which envisages the construction of three LNG liquefaction trains of 6.6 mln tonnes per annum each for the total LNG capacity of 19.8 mln tonnes, as well as cumulative gas condensate production capacity of 1.6 mln tonnes per annum. The project is being implemented on the resource base of the Utrenneye deposit. The first train is scheduled to be launched in 2023, the second and the third trains are anticipated in 2024 and 2026, respectively. Apart from Novatek (60%), China’s CNPC and CNOOC, France’s Total and a consortium of Japan’s Mitsui and Jogmec (all having a 10-percent stake) are participating in the project.

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