By ANNA SHIRYAEVSKAYA & STEPAN KRAVCHENKO
Novatek will supply fuel in its liquefied form to China
National Petroleum Corp. for 15 years, according to a
Novatek will sell at least 3 MMmtpy of liquefied natural gas
to CNPC on delivered ex-ship terms, with the price indexed to
the Japanese Crude Cocktail, the Tarko-Sale, Novatek said in a
statement. The agreement was signed during Prime Minister
Dmitry Medvedevs visit to Beijing. The period of supplies
can be extended, according to the statement.
Novatek, which is leading the $20 billion LNG project in the Russian Arctic
region, is challenging Gazproms monopoly on supplies of
super-chilled fuel abroad to benefit from the Asian
nations rising energy demand. Russia plans to allow
Novatek, as well as oil producer Rosneft, to export LNG
from next year.
CNPC agreed in June to buy a 20 % stake in the Yamal LNG project, joining Novatek and partner
Total. The deal is expected to be completed by December 1.
Yamal LNG at full capacity will produce 16.5 MMtpy of LNG
starting from the end of 2016, according to Novatek.