NOVATEK Gas & Power Asia and ENN LNG (Singapore), a subsidiary of ENN Natural Gas, have signed a long-term sale and purchase agreement (SPA) for LNG to be produced from the Arctic LNG 2 project.
The SPA stipulates the supply of around 0.6 mill tonnes per annum from Arctic LNG 2 for 11 years. It will be delivered on a DES basis to ENN’s Zhoushan LNG receiving terminal.
A second SPA has been agreed with Zhejiang Energy Gas Group, a subsidiary of the Zhejiang Provincial Energy Group also for Arctic LNG 2 LNG.
This follows a Heads of Agreement (HoA) signed by both parties on 2nd June, 2021 during the St. Petersburg International Economic Forum.
The SPA stipulates the supply of up to 1 mill tonnes of LNG per annum from Arctic LNG 2 for 15 years. The LNG will also be delivered on a DES basis to Zhejiang Energy’s Chinese LNG terminals.
Arctic LNG 2 involves the constructing three LNG liquefaction trains of 6.6 mill tonnes per annum each giving a total capacity of 19.8 mill tonnes, as well as cumulative gas condensate production capacity of 1.6 mill tonnes per annum.
The project’s participants include - NOVATEK (60%), TotalEnergies (10%), CNPC (10%), CNOOC (10%) and Japan Arctic LNG, a consortium involving Mitsui & Co Ltd and JOGMEC (10%).
