Novatek Looks for More Asian LNG Buyers After CNPC Deal

Novatek is looking to sell LNG to more Asian buyers after signing a deal with China National Petroleum Corporation last week, Bloomberg reported.

China National Petroleum Corporation (CNPC) agreed to acquire a 20% stake in Novatek’s Yamal LNG project. The Chinese firm will also get least 3 million tons of LNG per annum from the project.

Novatek currently is limited to supplying fuel to the domestic market and is awaiting the government’s decision on loosening Gazprom’s control over LNG shipments abroad, Bloomberg in a report said.

While some Yamal LNG volumes may flow to Europe when the project starts at the end of 2016, Novatek is targeting China, where, according to the International Energy Agency, demand rose 13 percent last year, Bloomberg said.

Novatek is figuring out how much LNG it can sell in Indian, Chinese and other Asian markets.