Russian gas independent Novatek is set to export more than 3 million tonnes per year (t/y) of LNG to China from the Arctic LNG 2 project as part of its latest deal with Shenergy Group.
The deal stipulates that cumulative supply of more than three million t/y of liquefied natural gas (LNG) will be delivered to terminals in China on delivered ex-ship (DES) basis for a term of 15 years.
“Our LNG commercial strategy is to diversify our client base and target end consumers in the fast-growing Asian Pacific region, and the LNG volumes produced from our Arctic LNG 2 project is core to our long-term objective of delivering affordable, secure and sustainable natural gas for many decades,” said Leonid Mikhelson, Novatek’s chairman, in a statement.
“The Chinese market is one of the key regions in our LNG marketing strategy, and we plan to further increase our supplies of liquefied natural gas to this country,” he added.
The Arctic LNG 2 in Russia’s Far East envisages building three LNG liquefaction trains with a capacity of 6.6 million t/y each, as well as cumulative gas condensate production capacity of 1.6 million t/y.
The total LNG capacity of the three liquefaction trains will be 19.8 million t/y. The project uses an innovative construction concept using gravity-based structure platforms to reduce overall capital cost and minimise its environmental footprint in the Arctic zone of Russia, said Novatek. As of 31 December 2020, the Utrenneye field’s proved plus probable (2P) reserves totalled 1,434 billion cubic meters of natural gas and 90 million tons of liquids.
Project partners include: NOVATEK (60%), TOTAL (10%), CNPC (10%), CNOOC (10%) and the Japan Arctic LNG, consortium of Mitsui & Co and JOGMEC (10%).
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