NOVATEK signed long-term agreements for supply of LNG from the Arctic LNG 2 project with Chinese companies

NOVATEK informs that the company has signed two long-term sale and purchase agreements for LNG produced at the Arctic LNG 2 project with Chinese companies:

• 11-year LNG sale and purchase agreement with ENN LNG (Singapore) Pte. Ltd., a subsidiary of ENN Natural Gas Co., Ltd. The SPA stipulates supply of approximately 0.6 million tons of LNG per annum on a DES basis to ENN’s Zhoushan LNG Receiving Terminal in China.
• 15-year LNG sale and purchase agreement with Zhejiang Energy Gas Group Co., Ltd, a subsidiary of the Zhejiang Provincial Energy Group (“Zhejiang Energy”), for supply of up to one million tons of LNG per annum from the Arctic LNG 2 project. The SPA follows on from the Heads of Agreement signed by parties on 2 June 2021 during the Saint-Petersburg International Economic Forum. The LNG will be delivered on a DES basis to Zhejiang Energy’s LNG terminals in China.

The DES basis means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all risks related to goods delivery to the named port of destination.

Source and photo: NOVATEK’s Press Service