CNOOC & CNPC Split 20% Supply of Arctic LNG 2
According to China National Offshore Oil Corporation (CNOOC), the company inked a long-term supply and purchase agreement with Arctic LNG 2, the new LNG export terminal in the east of Yamal jointly owned by Novatek (60%), TOTAL (10%), CNPC (10%), CNOOC (10%) and a consortium of Mitsui and Jogmec (10%).
CNOOC plans to purchase up to 198 million metric tons of LNG per annum for 20 years according to its equity interest. Arctic LNG 2 is designed with three LNG trains of 6.6 Mtpa capacity each and 19.8 Mtpa capacity in total. The first train is set to run by 2023-2024 as planned in the FID in September 2019. The Utrenneye field is the resource base for Arctic LNG 2. The field is located in the Gydan Peninsula in YNAO approximately 70 km across the Ob Bay from Yamal LNG.
CNOOC is the largest LNG buyer of China and ranked third-largest LNG importer of the globe. According to the company, its LNG import volume in 2020 approached 30 million tons, taking up around 44% of China’s total import. The new long-term SPA will not only enrich CNOOC’s LNG portfolio to supply the existing four terminals and windows at PipeChina terminals but also secure the start-up import of its new 3 Mtpa Binhai Terminal in East China’s Jiangsu Province which is also set to run into service by December 2022.
Update: According to Novatek, PAO NOVATEK announced on April 28 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 are planned to commence in 2023.
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