Russian energy giant Novatek and China's Zhejiang Energy signed an agreement on long-term liquified natural gas (LNG) supplies from the Arctic LNG 2 project at the St. Petersburg International Economic Forum (SPIEF) on Wednesday.
"The fast-growing Chinese market is a key region in our LNG marketing strategy, and we plan to further increase our supplies of cleaner-burning LNG to assist China in reaching its net zero targets by 2060," said Novatek's CEO Leonid Mikhelson at SPIEF.
"The agreement is consistent with our commercial LNG strategy to diversify our client base and target end consumers in the rapidly developing Asia-Pacific market," he added.
Novatek's Arctic LNG 2 project on the Gydan Peninsula envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each, and a cumulative gas condensate production capacity of 1.6 million tons per annum. The total LNG capacity of the three trains will be 19.8 million tons.
The company said earlier it had inked 20-year agreements with the shareholders of the Arctic LNG 2 on the sale and purchase of the entire produced volume of liquified natural gas.
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