PAO NOVATEK has announced that its joint venture OOO Arctic LNG 2 concluded 20-year LNG Sales and Purchase Agreements (SPAs) for the total LNG production volumes with all the Project’s participants. The LNG sales from Arctic LNG 2’s first liquefaction train is planned to commence in 2023.
The SPAs provide for LNG supplies from Arctic LNG 2 on FOB Murmansk and FOB Kamchatka basis with pricing formulas linked to international oil and gas benchmarks. The LNG offtake volumes are set in proportion to the respective participants’ ownership stakes in the Project.
“The long-term offtake agreements between Arctic LNG 2 and its participants ensure the future revenue stream from LNG sales and de-risks the Project,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “This represents one of the most important milestones in attracting the Project’s external financing that will be completed in 2021.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/29042021/arctic-lng-2-participants-conclude-spas/