Russian gas producer Novatek has entered into agreements with two Chinese companies, allowing them to buy into the Arctic LNG 2 project.
China National Oil and Gas Exploration and Development Company (CNODC), a subsidiary of China National Petroleum Corporation (CNPC), and China National Offshore Oil Corporation (CNOOC) will each acquire a 10 percent stake under the agreements signed at the Second Belt and Road Forum for International Cooperation in Beijing.
“The agreement is an important milestone in our Arctic LNG 2 project implementation as well as a continuation of our successful cooperation with CNPC,” noted Leonid Mikhelson, Novatek’s Chairman of the Management Board.
“ We are very glad that CNOOC has joined our Arctic LNG 2 project as our new partner, since China represents one of the key consuming markets for our LNG sales,” he said in a separate statement, adding that Arctic LNG 2 would be a game-changer in the global gas market.
French oil and gas company Total also has a 10 percent stake in the project under an agreement from March 2019 .
Novatek has additionally entered into Heads of Agreement (HoA) for the sale of liquefied natural gas (LNG) from the Arctic LNG 2 project with UK-based energy and commodity trading company Vitol and Spain’s energy company Repsol.
The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, according to Novatek.