Russia's Gas Giant Novatek Signs Deal On Deliveries Of LNG To China Spanning 15 Years

MOSCOW (UrduPoint News / Sputnik - 25th February, 2021) Russian gas giant Novatek said on Thursday that it had signed a deal with Shenergy Group, an energy company owned by the Shanghai authorities, on the deliveries of liquefied natural gas (LNG) to China for a term of 15 years.

"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," Leonid Mikhelson, Chairman of Novatek's Management board, said in a statement.

Under the deal, the Russian company will cumulatively deliver more than 3 million tons of LNG produced from its Arctic LNG 2 project to the terminals in China, according to the statement.

Novatek is the largest independent natural gas producer in Russia. It entered the LNG business in 2017 with the large-scale Yamal project, followed by the Arctic LNG 2 project. The latter is expected to be launched in 2023.