Novatek Signs Long-Term LNG Supply Agreements With Zhejiang Energy, Glencore -- Update
June 02 2021 - 6:54AM
Dow Jones News
By Adria Calatayud
Novatek said Wednesday that it has signed heads of agreements
with China's Zhejiang Energy Gas Group Co. and an affiliate of
Glencore PLC for the long-term supply of liquefied natural gas.
Russian energy company Novatek said the agreement with Zhejiang
Energy Gas, a subsidiary of Zhejiang Provincial Energy Group, is
for a term of 15 years.
The agreement establishes key commercial terms for the annual
supply of up to one million metric tons of liquefied natural gas
from the Arctic LNG 2 project, which will be delivered to Zhejiang
Energy's terminals in China, including feedstock for the buyer's
new gas-fired power-generation facilities, Novatek said. The deal
builds on a memorandum of understanding signed by the parties in
October 2019, Novatek said.
Novatek, which holds a 60% interest in the Arctic LNG 2 project,
said it plans to further increase its supplies of liquefied natural
gas to assist China in reaching its net-zero targets by 2060.
Separately, Novatek said it has signed a heads of agreements for
the long-term supply of more than 500 tons of liquefied natural gas
a year from the Arctic LNG 2 project to an affiliate of mining and
commodities-trading company Glencore. The gas will be delivered to
several locations in East Asia, Novatek said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
June 02, 2021 06:52 ET (10:52 GMT)
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