Russia’s largest independent natural gas producer NOVATEK announced that its wholly-owned subsidiary, NOVATEK Gas & Power Asia signed a long-term LNG Sales and Purchase Agreement with Chinese stock investment company Shenergy Group for the LNG produced from the Arctic LNG 2 project.
The agreement stipulates the cumulative supply of more than three million tons of LNG for a term of 15 years and will be delivered to LNG terminals in China.
“Our LNG commercial strategy is to diversify our client base and target end consumers in the fast-growing Asian Pacific region and the LNG volumes produced from our Arctic LNG 2 project is core to our long-term objective of delivering affordable, secure and sustainable natural gas for many decades,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “The Chinese market is one of the key regions in our LNG marketing strategy and we plan to further increase our supplies of liquefied natural gas to this country.”
Arctic LNG 2 envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each, as well as a cumulative gas condensate production capacity of 1.6 million tons per annum. The total LNG capacity of the three liquefaction trains will be 19.8 million tons. The project utilises an innovative construction concept to reduce overall capital cost and minimise its environmental footprint in the Arctic zone of Russia.