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.

Most Popular

Venture Global, Petronas seal 20-year LNG SPA

US LNG exporter Venture Global LNG has signed a 20-year LNG supply contract with Malaysian energy giant Petronas for volumes from the CP2 project in Louisiana.

Delfin inks new deals for US FLNG project, eyes FID later this year

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, is moving forward with the project by signing new deals with Siemens Energy, Samsung Heavy, and Black & Veatch.

Golden Pass LNG seeks re-export approval

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is seeking approval from the US DOE to export previously imported LNG from October, as it nears the launch of the first liquefaction train.

More News Like This

Russian LNG production drops in May

Russian liquefied natural gas (LNG) production continued to decrease in May compared to last year, according to the Russian statistics agency Rosstat.

Russia’s Novatek in LNG truck move

Russian LNG producer Novatek and compatriot National Carrier (NATCAR) are joining fores to develop the market for LNG as fuel for trucks.

Russian LNG production drops in April

Russian liquefied natural gas (LNG) production decreased in April compared to last year, according to the Russian statistics agency Rosstat.

Russian LNG production down in Q1

Russian liquefied natural gas (LNG) production decreased in the first quarter of this year, according to the Russian statistics agency Rosstat.