PAO NOVATEK (NOVATEK) announced that as part of the Saint-Petersburg International Economic Forum, its wholly owned subsidiary, NOVATEK Gas & Power Asia Pte. Ltd., and Zhejiang Energy Gas Group Co., Ltd, a subsidiary of the Zhejiang Provincial Energy Group (Zhejiang Energy) signed a Heads of Agreement for the long-term supply of LNG from the Arctic LNG 2 project.

The agreement builds on the MoU signed by the parties in October 2019 and establishes the key commercial terms for the annual supply of up to 1 million t of LNG from the Arctic LNG 2 project for a term of 15 years. The LNG will be delivered on a DES basis to Zhejiang Energy’s LNG terminals in China, including feedstock for the buyer's new gas-fired power generation facilities.

“The agreement is consistent with our commercial LNG strategy to diversify our client base and target end consumers in the rapidly developing Asian Pacific market,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “The fast-growing Chinese market is a key region in our LNG marketing strategy, and we plan to further increase our supplies of cleaner-burning LNG to assist China in reaching its net zero targets by 2060.”