NOVATEK said that its fully-owned subsidiary — NOVATEK Gas & Power Asia has inked a long-term LNG sale and purchase agreement (SPA) with ENN LNG (Singapore), a subsidiary of ENN Natural Gas, for the LNG drawn from the Arctic LNG 2 project in Russia.
ENN Natural Gas is a Chinese natural gas distribution company.
As per the terms of the SPA, NOVATEK will supply nearly 0.6 million tons of LNG per annum from the Arctic LNG 2 project to the Chinese firm for a term of 11 years.
The LNG will be delivered by the Russian company on a DES basis to ENN Natural Gas’ Zhoushan LNG Receiving Terminal in China.
Leonid Mikhelson — NOVATEK Chairman of the Management Board said: “We have reached another milestone in successful marketing of NOVATEK’s share of LNG to be produced by our Arctic LNG 2 project.
“This is another LNG SPA for delivery to the Chinese market, which is in line with our LNG strategy to expand sales to the Asia-Pacific region with its growing demand for clean-burning natural gas.”
The Arctic LNG 2 project involves the construction of three LNG liquefaction trains with a capacity of 6.6 million tons per annum each for the total LNG capacity of 19.8 million tons. The project will also have a cumulative gas condensate production capacity of 1.6 million tons per year.
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