Novatek plans to supply Japan with more than the 2 million tons of LNG it is slated to receive annually from the Arctic LNG 2 plant, the Russian company’s head Leonid Mikhelson was quoted by Russian news agencies as saying on Thursday.

“In the Arctic LNG 2 project, partners sell LNG depending on the ownership share. The Japanese side has 10% – this is 2 million tons. They will be on the Japanese market for sure. But there are already contracts and additional contracts from Novatek’s share for Japan are being considered,” Mikhelson said.

Novatek, with a 60% stake, leads Arctic LNG 2. Other shareholders include French energy major TotalEnergies TTEF.PA, China’s CNPC, CNOOC 0883.HK, and Japan Arctic LNG – who each hold a 10% stake – as well as a consortium of Mitsui & Co, Ltd. 8031.T and JOGMEC.

Mikhelson said that the first line of Arctic LNG 2 will reach its estimated capacity in January-March 2024 with the first LNG to be produced in 2023.

Arctic LNG 2’s three lines will each have production capacity of 6.6 million tonnes of LNG per year. Investment in the project is estimated at $21.3 billion.
Source: Reuters (Reporting by Maxim Rodionov Editing by Chris Reese and Deepa Babington)