Repsol Firms Up Novatek LNG Contract: Press

Spanish gas marketer Repsol reportedly concluded a 15-year LNG purchase contract with Novatek in 2020 for delivery ex-ship at Spanish terminals. The price pegged to the Dutch TTF hub and crude oil, Russian business daily Kommersant reported March 9 without naming sources.

The deal was first announced in principle in April 2019, along with another of equal volume and duration with trader Vitol, for which the delivery points have been fixed at either one of the two transhipment depots planned to be built at Murmansk and Kamchatka. To save using winterised LNG tankers in warmer waters, Novatek is building capacity at either end of the northern sea route.

The LNG is to come from Novatek's Arctic LNG-2 project for which a final investment decision has yet to be taken and follows last month's deal with Shenergy for a smaller amount: 3mn mt over 15 years. Last autumn Novatek announced it had lined up $9.5bn from international lenders, with more money to come from Russian sources.