Russian gas producer Novatek has entered into two Heads of Agreement (HoA) for the sale of liquefied natural gas (LNG) from the Arctic LNG 2 project.
The HoAs were signed with UK-based energy and commodity trading company Vitol and Spain’s energy company Repsol.
Both documents were signed during the International Conference & Exhibition on Liquefied Natural Gas in Shanghai and are expected to lead to the signing of 15-year contracts with annual supply of one million tons of LNG from Arctic LNG 2 each.
The deal with Vitol would see the LNG shipped on FOB basis to Novatek’s transshipment terminals in the Murmansk region and Kamchatka.
The LNG for Repsol would be delivered ex-ship primarily to markets on the Iberian Peninsula.
“We commenced contracting LNG volumes from our new project Arctic LNG 2,” Novatek’s first deputy chairman of the management board Lev Feodosyev said.
“LNG volumes sold at our transshipment terminals ensures the flexibility of LNG supplies around the world and allows us to create LNG hubs in the Asia-Pacific and Atlantic basins”.
The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, according to Novatek.