Russia’s largest independent natural gas producer and LNG operator Novatek has signed a non-binding heads of agreement (HoA) for the supply of LNG with Repsol.
Novatek said on Tuesday that the agreement with Repsol was signed by the company’s trading unit Novatek Gas&Power Asia.
The heads of agreement envisages concluding a 15-year contract with an annual supply of 1 million tons of LNG from the Arctic LNG 2 project as well as other Novatek’s projects. The LNG will be delivered ex-ship primarily to markets on the Iberian Peninsula.
Novatek’s first deputy chairman of the management board Lev Feodosyev said: “ The agreement for the sale of LNG would allow us to increase our market presence on the Iberian Peninsula where Russian pipeline gas is not supplied. ”
As for the Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure platforms.
The project is based on the hydrocarbon resources of the Utrenneye field.
It is worth noting that Novatek Gas & Power Asia also signed a similar heads of agreement with Vitol for the supply of LNG from the Arctic LNG 2 project.