China Buying Stake in Novatek’s Arctic LNG 2

Russian gas producer Novatek has entered into agreements with two Chinese companies, allowing them to buy into the Arctic LNG 2 project.

China National Oil and Gas Exploration and Development Company (CNODC), a subsidiary of China National Petroleum Corporation (CNPC), and China National Offshore Oil Corporation (CNOOC) will each acquire a 10 percent stake under the agreements signed at the Second Belt and Road Forum for International Cooperation in Beijing.

“The agreement is an important milestone in our Arctic LNG 2 project implementation as well as a continuation of our successful cooperation with CNPC,” noted Leonid Mikhelson, Novatek’s Chairman of the Management Board.

“We are very glad that CNOOC has joined our Arctic LNG 2 project as our new partner, since China represents one of the key consuming markets for our LNG sales,” he said in a separate statement, adding that Arctic LNG 2 would be a game-changer in the global gas market.

French oil and gas company Total also has a 10 percent stake in the project under an agreement from March 2019.

Novatek has additionally entered into Heads of Agreement (HoA) for the sale of liquefied natural gas (LNG) from the Arctic LNG 2 project with UK-based energy and commodity trading company Vitol and Spain’s energy company Repsol.