Novatek signs contracts to sell Arctic LNG 2 gas to Japanese cos

BELOKAMENKA, Murmansk Region. July 21 (Interfax) - Japanese companies, as shareholders of Arctic LNG 2, will be able to take about 2 million tonnes of liquefied natural gas from the project annually, but majority shareholder Novatek has also signed contracts to sell LNG from its stake to Japanese companies, the Russian gas producer's CEO, Leonid Mikhelson told reporters on Thursday.

He recalled that Arctic LNG 2 will sell LNG to its partners in proportion to their equity stakes. The Japanese consortium of Mitsui and JOGMEC holds a 10% stake in the project, which is expected to have capacity to produce 19.8 million tonnes per year.

"Therefore, 2 million tonnes of LNG will be on the Japanese market for certain. But there already are contracts and contracts are being considered additionally for the Japanese market from Novatek's share," Mikhelson said.

The Arctic LNG 2 project involves the construction of three LNG production trains with capacity of 6.6 million tonnes per year each. The LNG modules are being built on gravity based structures.

Novatek owns 60% of the project. France's TotalEnergies , China's CNPC and CNOOC, and a consortium of Japan's Mitsui & Co. and JOGMEC each hold 10% stakes in the project.