now loading...
Wealth Asia Connect Treasury & Capital Markets Europe ESG Forum TechTalk
Asia Connect
Arctic LNG project in Russia lines up two more offtakers from Asia
ENN Natural Gas and Zhejiang Energy subsidiaries sign supply deals with Novatek
Michael Marray 19 Jan 2022

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%).

Conversation
Wendy Yeo
Wendy Yeo
director, fund management
iFAST Financial
- JOINED THE EVENT -
In-person roundtable
Asia and the future of funds
View Highlights
Conversation
Christine Zhang
Christine Zhang
executive director & general manager, overseas business department
China Chengxin International Credit Rating
- JOINED THE EVENT -
17th Asia Bond Markets Summit - China Edition
Rebalancing in the transition journey
View Highlights