Russian gas company Novatek's wholly owned subsidiary Gas & Power Asia and ENN Natural Gas unit  ENN LNG (Singapore) have signed a long-term sale and purchase agreement (SPA) for liquefied natural gas produced from the future Arctic LNG 2 project.

The deal, announced on January 11, stipulates the supply of approximately 0.6 million tonnes of LNG per annum from the Arctic LNG 2 project for a term of 11 years. The LNG will be delivered on a DES basis to ENN’s Zhoushan LNG Receiving Terminal in China.

“We have reached another milestone in successful marketing of Novatek’s share of LNG to be produced by our Arctic LNG 2 project,” says Novatek chairman Leonid Mikhelson. “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."

Also on January 11, Novatek Gas & Power Asia and Zhejiang Energy Gas Group, a subsidiary of the Zhejiang Provincial Energy Group (Zhejiang Energy), announced a long-term SPA for the LNG produced from the Arctic LNG 2 project.

The SPA follows on the heads of agreement signed by parties on June 2 2021 during the Saint-Petersburg International Economic Forum, and stipulates the supply of up to one million tonnes of LNG per annum from the Arctic LNG 2 project for a term of 15 years. The LNG will be delivered to Zhejiang Energy’s LNG terminals in China.  

Arctic LNG 2 envisages the construction of three LNG liquefaction trains of 6.6 million tonnes per annum each for a total LNG capacity of 19.8 million tonnes, as well as cumulative gas condensate production capacity of 1.6 million tonnes per annum. The shareholders are Novatek (60%), TotalEnergies (10%), China National Petroleum Corporation (10%), China National Offshore Oil Corporation (10%) and Japan Arctic LNG, a consortium of Mitsui & Co and Jogmec (10%).