NOVATEK & Zhejiang Energy Sign Pact for LNG Supply
Arctic LNG 2NOVATEK

NOVATEK & Zhejiang Energy Sign Pact for LNG Supply

PAO NOVATEK announced that as part of today’s Saint-Petersburg International Economic Forum, its wholly owned subsidiary, NOVATEK Gas &

PAO NOVATEK announced that as part of today’s Saint-Petersburg International Economic Forum, its wholly owned subsidiary, NOVATEK Gas & Power Asia Pte Ltd and Zhejiang Energy Gas Group Co, Ltd, a subsidiary of the Zhejiang Provincial Energy Group signed a Heads of Agreement for the long-term supply of LNG from the Arctic LNG 2 project. The Agreement builds on the MOU signed by the parties in October 2019 and establishes the key commercial terms for the annual supply of up to one million tonnes of LNG from the Arctic LNG 2 project for a term of 15 years. The LNG will be delivered on a DES basis to Zhejiang Energy’s LNG terminals in China, including feedstock for the buyer's new gas-fired power generation facilities.

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 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%).

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