Russian independent LNG producer Novatek has signed a framework long-term agreement to supply LNG to China’s Zhejiang Hangjiaxin Clean Energy.
Zhejiang Hangjiaxin said in a statement it had signed the deal with Novatek’s unit in Asia on November 24.
Under the deal, Novatek would send liquefied natural gas to the 2.4 mtpa Hibiki LNG terminal, owned by Saibu Gas and located on the northernmost city on Japan’s Kyushu Island in Fukuoka prefecture.
From there, Zhejiang Hangjiaxin would deliver the fuel to its Jiaxing LNG terminal in eastern Zhejiang province.
This trade model opens up new opportunities for using small but also medium-sized LNG vessels to supply the Jiaxing terminal, Hangjiaxin said.
The firm did not provide any additional information.
In a separate statement, Japan’s Saibu Gas said it has signed heads of agreement with Novatek Gas and Power Asia for LNG transshipment but also supply to Zhejiang Hangjiaxin, utilizing the Hibiki LNG terminal.
As part of the transshipment project, Novatek’s icebreaking LNG carriers or other standard vessels carrying about 70,000 MT would deliver the fuel to the Hibiki terminal, Saibu Gas said.
Saibu Gas said it would store this LNG in the terminal’s storage tanks for transshipment to medium-sized LNG carriers which will then deliver it to the Jiaxing terminal.
According to Saibu Gas, the deal includes delivering about 140,000 MT annually to the Jiaxing LNG terminal, starting from fiscal 2024.
Moreover, the HOA follows talks between Saibu Gas and Novatek on the possibility of a business partnership utilizing the Hibiki LNG terminal, it said.
Saibu Gas has earlier this year received its first LNG cargo from Novatek’s giant Yamal project in the Russian Arctic.
Teekay’s ice-class Arc7 LNG carrier Eduard Toll, one of the fifteen ice-class vessels serving the Yamal project, delivered the cargo to the Hibiki regasification terminal in Kitakyushu on July 18.
The Japanese firm says it has been promoting global business as it looks to make the Hibiki LNG terminal a hub for LNG trade in the Asian region.