Russia’s second largest natural gas producer, PAO Novatek, has signed two long-term liquefied natural gas (LNG) supply contracts from its Arctic LNG 2 project with two Chinese distributors. 

A subsidiary of China’s largest independent gas distributor, ENN Natural Gas Co. Ltd., agreed to purchase 0.6 million metric tons/year (mmty) for 11 years from Novatek. Volumes would be delivered to ENN’s Zhoushan LNG import terminal. ENN plans to double capacity at the Zhoushan terminal to 10 mmty by the end of 2024.

Novatek agreed to a second deal with a subsidiary of Zhejiang Provincial Energy Group to supply 1 mmty for 15 years to be delivered to import terminals in China’s Zhejiang province.  

The deals are the latest in a buying spree among China’s natural gas consumers....