Novatek Secures Buyers for All Arctic LNG 2 Volumes

PAO Novatek, Russia’s largest independent natural gas producer, has contracted all of the supply from its proposed Arctic LNG 2 export project under development north of Siberia on the Gydan Peninsula.

The company said it has signed 20-year sales and purchase agreements (SPA) with the project’s participants for its 19.8 million metric tons/year capacity. Arctic LNG 2 includes three trains that are slated to come online between 2023 and 2026. Novatek holds a 60% stake, while China National Offshore Oil Corp., China National Petroleum Corp, Japan Arctic LNG and Total SE each hold 10%. 

The SPAs provide for LNG supplies on a free-on-board basis and include pricing formulas linked to unspecified international oil and gas benchmarks. 

While Novatek reported higher oil and gas...