Russian natural gas producer PAO Novatek has entered into binding agreements with two Chinese state-run energy majors for the sale of participating interests in Novatek’s Arctic LNG 2 project.
Under the agreements, China National Offshore Oil Corporation (CNOOC) and China National Petroleum Corporation (CNPC) will each acquire a 10% stake in the project.
“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,” noted Leonid Mikhelson, PAO Novatek’s chairman, adding that the agreement marks a successful continuation of cooperation with CNPC.
“Arctic LNG 2 will be a game-changer in the global gas market, and our proven track record to successfully build an LNG facility in the Arctic zone, combined with a proven logistical model with access to prospective markets and large hydrocarbon resource base will ensure the successful implementation of this world class project,” Mikhelson said.
The Arctic LNG 2 project is a major liquefied natural gas development led by Novatek on the Gydan Peninsula in the far north of Russia. The project is currently being developed with first production expected in 2023 with a fleet of ice-class LNG carriers planned that will be able to use the Northern Sea route and a transhipment terminal in Kamchatka for cargoes destined for Asia.