Oil & Gas
NOVATEK & Glencore sign Agreement for LNG Supply
PAO NOVATEK announced that as part of Saint-Petersburg International Economic Forum, its wholly owned subsidiary NOVATEK Gas & Power Asia Pte.
PAO NOVATEK announced that as part of Saint-Petersburg International Economic Forum, its wholly owned subsidiary NOVATEK Gas & Power Asia Pte. Ltd and an affiliate of Glencore Plc signed a Heads of Agreement for the long term supply of LNG from the Arctic LNG 2 project. The Agreement established the key commercial terms for the long-term supply in excess of 0.5 million tons of LNG per annum from the Arctic LNG 2 project. The LNG will be delivered to a number of locations in East Asia.
Arctic LNG 2 envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each for the total LNG capacity of 19.8 million tons, as well as cumulative gas condensate production capacity of 1.6 million tons per annum. The Project will utilize an innovative construction concept of gravity-based structure (GBS) platforms to reduce overall capital cost and minimize the Project’s environmental footprint in the Arctic zone of Russia. As of 31 December 2020, the Utrenneye field’s 2P reserves under PRMS totaled 1,434 billion cubic meters of natural gas and 90 million tons of liquids.
The Project’s participants include: NOVATEK (60%), TotalEnergies (10%), CNPC (10%), CNOOC (10%) and the Japan Arctic LNG, consortium of Mitsui & Co, Ltd. and JOGMEC (10%).