Russia’s largest independent natural gas producer PAO NOVATEK (NOVATEK) has committed to further liquefied natural gas (LNG) supply from its Arctic LNG 2 project following the signing of two Sales and Purchase Agreements (SPAs).
Through its subsidiary, NOVATEK Gas & Power Asia Pte. Ltd. NOVATEK will provide up to one million tonnes per annum (MTPA) of LNG to China-based Zhejiang Energy Gas Group Co., Ltd, subsidiary of the Zheijiang Provincial Energy Group (Zheijiang Energy).
A separate SPA will involve NOVATEK supplying 0.6 MTPA to ENN LNG – a subsidiary of ENN Natural Gas Co., Ltd – which will be delivered to ENN’s Zhoushan LNG Receiving Terminal in China.
Commenting on the delivery, Leonid Mikhelson, Chairman of the Management Board, NOVATEK, said, “We have reached another milestone in successful marketing of NOVATEK’s share of LNG to be produced by our Arctic LNG 2 project.”
“This is another LNG SPA for delivery to the Chinese market, which is in line with our LNG strategy to expand sales to the Asia-Pacific region with its growing demand for clean-burning natural gas.”
The Arctic LNG 2 project is a collaborative effort between several companies including NOVATEK, TotalEnergies and Japan Arctic LNG. It aims to construct three LNG liquefaction trains of 6.6 MTPA each for a total capacity of nearly 20m tonnes.
Although no final date for completion of the project has been given, the overall progress was reported as being approximately 52% at the end of the third quarter of 2021.