Shenergy Group, a state-owned energy group owned by the Shanghai government (China), has signed a 15-year LNG sales and purchase agreement with the Russian oil and gas producer Novatek for more than 3 Mt/year of LNG from the Arctic LNG 2 project in Russia.
The Arctic LNG 2 project will consist of three liquefaction trains of 6.6 Mt/year capacity each, with the first one expected to be commissioned in 2023, while the trains 2 and 3 are expected for commercial operation in 2024 and 2026, respectively. The liquefaction plant will be fed by output from the Utrenneye field in the hydrocarbon-rich Gydan peninsula in the Yamal-Nenets Autonomous District (Russia). Its reserves are estimated at 1,434 bcm of gas and 90 Mt of liquids (at the end of 2020). The project's partners are Novatek with a majority stake of 60%, Total, CNOOC, CNPC and Japan Arctic LNG holding (a consortium of Mitsui and JOGMEC) with 10% stakes each.