Russian natural gas producer Novatek announced the signing of an agreement with Japanese Saibu Gas Co., Ltd. aiming to establish a joint venture focused on marketing LNG and natural gas, as well as the construction of a new LNG storage tank at the Hibiki LNG terminal.
The signing of the Heads of Agreement took place in the presence of the Minister of Economic Development of the Russian Federation Maxim Oreshkin and the Minister of Economy, Trade and Industry of Japan Hiroshige Seko, on 5 September.
Under the Agreement, the parties intend to establish a joint venture focused on marketing LNG and natural gas to end customers, as well as developing the business for bunkering and gas-fired power generation in Japan and the Asian region.
The agreement also foresees the constructing and operating a new LNG storage tank at the Hibiki LNG terminal.
We have made another important step forward in implementing our strategy to enter the end customer market in key gas consuming countries, among which Japan is one the biggest markets and long time consumer of LNG. The creation of our joint venture with Saibu Gas allows us to increase the marketing flexibility of natural gas supplies and create additional opportunities for LNG sales in this important gas consuming region,
…noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board.
This follows the signing of another agreement by Saibu Gas, NYK, Kyushu Electric Power and Chugoku Electric Power in 2018, regarding a joint study for commercialization of LNG fuel supply for ships in the Setouchi and Kyushu districts.
Hibiki LNG terminal in Kitakyushu city saw the first LNG bunkering in the western Japan in May, using the truck-to-ship method.
