The MOU with China Development Bank confirms the parties’ intentions to collaborate in implementing the “Arctic LNG 2” project, the company said, as well as other NOVATEK’s projects, including financing and investment into the capital of these projects.

Leonid Mikhelson, Chairman of NOVATEK’s Management Board, noted: "Our strategy envisages a rapid growth of LNG production using international financing sources. We already have a positive experience of cooperating with the China Development Bank on the Yamal LNG project, and we are glad to continue this mutually beneficial cooperation on our new LNG projects.”

Further, the Strategic Cooperation Agreement with the Chinese National Petroleum Company (CNPC), one of the world's largest oil companies, emphasizes on implementing the Arctic LNG 2 project, as well as collaborating in different segments of the LNG and natural gas markets, including LNG trading and gas infrastructure development.

"We believe our strategic cooperation agreement will further enhance our mutual relationship as well as open up new opportunities for both companies, utilizing our experience in implementing LNG projects combined with the enormous opportunities in the Chinese market, one of the most perspective gas markets globally,” said Mr. Mikhelson.

The “Arctic LNG 2” project is an LNG plant that will be built by Novatek on the Gydan Peninsula. The Utrenneye gas field will be the resource base for the project, with defined production capacity estimated at about 30 billion cubic metres per year, Mr. Mikhelson was quoted as saying by Reuters.  “Arctic LNG 2” is expected to be completed by 2023 and will export gas from Novatek's Salmanovskoye and Geofizicheskoye fields.

The company is also due to start operations at its Yamal LNG project in the fourth quarter of 2017, that will produce around 16.5 million tonnes of LNG per year.

The two projects together are expected to produce around 70 million tonnes per annum. At the moment, only one LNG facility is operational in Russia, run by Gazprom on the Pacific island of Sakhalin.