Novatek Signs Long-Term LNG Supply Agreements With Zhejiang Energy, Glencore -- Update

   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 [e-mail]

(END) Dow Jones Newswires

June 02, 2021 06:52 ET (10:52 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.