The agreement ensures a 15-year contract with annual supply of one million tons of LNG from the Arctic LNG 2 project as well as other Novatek’s projects.

The LNG will be shipped on FOB basis to Novatek’s transshipment terminals in the Murmansk region and Kamchatka.

Commenting on the agreement, Novatek’s First Deputy Chairman of the Management Board Lev Feodosyev, stated:

We commenced contracting LNG volumes from our new project Arctic LNG 2

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Mr. Feodosyev also added that LNG volumes sold at Novatek’s transshipment terminals ensures the flexibility of LNG supplies around the world and enables the company to create LNG hubs in the Asia-Pacific and Atlantic basins.

The Arctic LNG 2 project includes the construction of three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The Project is based on the hydrocarbon resources of the Utrenneye field.

As of 31 December 2018, the Utrenneye field’s 2P reserves under PRMS totaled 1,138 billion cubic meters of natural gas and 57 million tons of liquids. Under the Russian classification reserves totaled 1,978 billion cubic meters of natural gas and 105 million tons of liquids.