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    Novatek finalises LNG supply deal with China's Zhejiang Energy

Summary

The agreement follows on from the heads of agreement signed by the parties in June last year.

by: Shardul Sharma

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Novatek finalises LNG supply deal with China's Zhejiang Energy

Russia’s Novatek has signed an agreement to supply LNG from the Arctic LNG 2 project to China’s Zhejiang Energy Gas Group Co, it said on January 11.  

The sale and purchase agreement covers the supply of approximately 1mn metric tons/year of LNG for a term of 15 years. The agreement follows on from the heads of agreement signed by the parties in June last year.

Arctic LNG 2 envisages constructing three liquefaction trains with a combined LNG production of 19.8mn mt/yr, as well as 1.6mn mt/yr of condensate output. Besides Novatek, the project's participants include TotalEnergies, CNPC, CNOOC and Japan Arctic LNG, a consortium of Mitsui & Co and JOGMEC. 

Novatek on January 11 also signed an agreement to supply LNG to another Chinese firm, ENN.