While at the International Conference & Exhibition on Liquefied Natural Gas, Novatek Gas & Power Asia and Repsol announced that the two companies entered into a non-binding heads of agreement for liquified natural gas (LNG).
Novatek Gas & Power Asia, a subsidiary of PAO Novatek, entered the non-binding agreement with the expected outcome of one million tons per annum (MTPA) of LNG over 15 years. The terms of the contract will be ex-ship and will off-load in the Iberian Peninsula region. The LNG is expected to be supplied from the Arctic LNG project and other NOVATEK locations.
Lev Feodosyev, the First Deputy Chairman of the Management Board at NOVATEK said, “Expanding our supply geography and diversifying our long-term contract customer base is consistent with the Company’s strategy to ramp up LNG production in the Russian Arctic.” Mr. Feodosyev also noted that this contract will increase the company’s presence in the area as there is no pipeline supply infrastructure.
