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Novatek plans to deliver its share of Arctic LNG 2 project’s output to Japan — CEO

The Japanese side holds 10% in the project, which amounts to two million tons

© Lev Fedoseev/TASS, archive

BELOKAMENKA /Murmansk Region/, July 21. /TASS/. Russian gas company Novatek plans to supply some of the liquefied natural gas (LNG) it will get from the Arctic LNG 2 project to Japan, CEO Leonid Mikhelson has told reporters.

"Unlike Yamal LNG, the Arctic LNG 2 project envisages that the liquefied natural gas is marketed by partners, [depending on their] share in the project. The Japanese side holds 10% in the project, which amounts to two million tons. They will certainly be delivered to the Japanese market. However, contracts have already been signed to supply to Japan a portion of Novatek’s share as well, and more [potential contracts] are being discussed now," the Novatek CEO said.

Arctic LNG-2 is Novatek's second LNG project. It includes the construction of three lines for the production of liquefied natural gas with a capacity of 6.6 mln metric tons per year each and stable gas condensate up to 1.6 mln metric tons per year. The project shareholders include Novatek (60%), Total (10%), CNPC (10%), CNOOC Limited (10%) and Japan Arctic LNG, a consortium of Mitsui and Jogmec (10%).

The first line of the project is scheduled to be launched this year, the second one - next year, and the third one - in 2026.

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