PAO Novatek joint venture OOO Arctic LNG 2 has concluded 20-year LNG sales and purchase agreements with the project’s participants for all anticipated production. Sales from the 19.8-million tonne/year (tpy) plant’s first 6.6-million tpy liquefaction train are expected to begin in 2023.
The agreements provide for LNG supplies from Arctic LNG 2 on free-on-board (FOB) Murmansk and FOB Kamchatka bases, with pricing formulas linked to international oil and gas benchmarks. Offtake volumes are set in proportion to the respective participants' ownership stakes in the project.
Project participants include: Novatek (60%), Total SE (10%), China National Petroleum Corp., (10%), China National Offshore Oil Corp. Ltd. (10%), and the Japan Arctic LNG consortium of Mitsui & Co. Ltd. and Japan Oil, Gas and Metals National Corp. (10%).
Novatek will source gas for Arctic LNG 2 from its Utrenneye field in the northern part of the Gydan peninsula, Yamal-Nenets Autonomous District, on the shores of the Gulf of Ob. As of end-2020, Utrenneye’s 2P Petroleum Resources Management System reserves totaled 1.434 trillion cu m of natural gas and 90 million tons of liquids.
