Russian gas producer, NOVATEK, has signed a deal with Chinese energy company, Zhejiang, for the long-term supply of LNG form the Arctic LNG 2 project.

The 15-year agreement builds upon the MOU signed by both parties in 2019. During the length of the agreement, the LNG will be delivered on a DES basis from the Arctic LNG 2 project to Zhejiang Energy’s LNG terminals in China at a rate of one million tonnes per year.

 Leonid Mikhelson, NOVATEK’s Chairman of the Management Board, said, “The agreement is consistent with our commercial LNG strategy to diversify our client base and target end consumers in the rapidly developing Asian Pacific market.”

“The fast-growing Chinese market is a key region in our LNG marketing strategy, and we plan to further increase our supplies of cleaner-burning LNG to assist China in reaching its net zero targets by 2060.”