28 Apr 2021 13:15

Arctic LNG 2 sells entire output for 20 years in advance to shareholders

MOSCOW. April 28 (Interfax) - The Arctic LNG 2 LLC joint venture has signed 20-year purchase and sale agreements for its entire LNG output with all project participants, Novatek said in a press release.

The start of LNG sales from the project's first technological line is scheduled for 2023.

The signed contracts envisage LNG supplies from Arctic LNG 2 on a free-on-board (FOB) basis at Murmansk and FOB basis at Kamchatka as per price formulas tied to international oil and gas indices. Supply volumes are to be based proportionally on each participant's ownership share in the project.

"Signing long-term agreements between Arctic LNG 2 and its participants ensures future cash flow from LNG sales and reduces project risks. This is one of the most important stages in organizing external financing for the project, and attracting financing is set to be completed during 2021," Novatek CEO Leonid Mikhelson was quoted as saying in the press release.