Home Offshore Energy NOVATEK and Glencore sign heads of agreement on LNG supply

NOVATEK and Glencore sign heads of agreement on LNG supply

PAO NOVATEK announced that as part of today’s Saint-Petersburg International Economic Forum, its wholly owned subsidiary, NOVATEK Gas & Power Asia Pte. Ltd., and an affiliate of Glencore signed a Heads of Agreement (“Agreement”) for the long-term supply of LNG from the Arctic LNG 2 project.

The Agreement established the key commercial terms for the long-term supply in excess of 0.5 million tons of LNG per annum from the Arctic LNG 2 project. The LNG will be delivered to a number of locations in East Asia.

“The market for LNG in the Asia Pacific region has fully recovered from the impact of the coronavirus pandemic and has now resumed a stable growth phase”, noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “This Agreement is consistent with NOVATEK’s commercial strategy to build a sustainable LNG sales portfolio including both end customers and portfolio players in the Asia Pacific market, with LNG delivered all-year-round along the Northern Sea Route”.