Russia’s largest independent gas producer, Novatek, has signed a long-term contract with a Chinese partner as it aims to expand its presence in the fast-growing Asian-Pacific region.
The deal with Shenergy Group will see Novatek deliver over three million tons of liquefied natural gas (LNG) to terminals in China over 15 years, Novatek announced on Thursday.
“Our LNG commercial strategy is to diversify our client base and target end consumers in the fast-growing Asian Pacific region,” the head of Novatek, Leonid Mikhelson, said in a statement. “The Chinese market is one of the key regions in our LNG marketing strategy, and we plan to further increase our supplies of liquefied natural gas to this country.”
Arctic LNG 2 is Novatek’s second large-scale LNG project in Russia’s Arctic. It includes the construction of three LNG liquefaction trains, which will have a total annual capacity of 19.8 million tons. The project has attracted several foreign investors, including Chinese companies CNOOC and CNPC, France’s Total and a consortium of Japan’s Mitsui and Jogmec, which each have a 10 percent share in the project.
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