Novatek pens long-term LNG supply deal with China’s ENN

Rusian LNG giant Novatek has signed a long-term LNG supply deal with a unit of Chinese independent gas distributor ENN.

Under the sales and purchase agreement, Novatek’s gas and power unit would deliver about 0.6 million tons of LNG per annum for a term of 11 years to ENN LNG (Singapore), a unit of ENN Natural Gas, according to a Novatek statement on Tuesday.

ENN will receive the supplies on a DES basis at its Zhoushan LNG terminal in China.

The supplies will come from Novatek’s Arctic LNG 2 project, currently under construction on the Gydan peninsula.

This marks the second Chinese LNG supply deal Novatek announced on Tuesday following the final agreement with Zhejiang Energy Gas Group.

“We have reached another milestone in successful marketing of Novatek’s share of LNG to be produced by our Arctic LNG 2 project,” Novatek’s chief Leonid Mikhelson, said.

“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,” he said.

The Arctic LNG 2 project includes the construction of three trains with a capacity of 6.6 mtpa, each, using gravity-based structure platforms.

Novatek, which holds a 60 percent stake in the project, plans to launch the first GBS in 2023, followed by the second in 2024, and the third in 2025.

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