Russian independent energy company Novatek has announced the first delivery of its liquefied natural gas (LNG) from its Yamal project in the Arctic to Japan. The shipment was unloaded at the Tobata LNG Terminal in accordance with the delivery schedule, Natural Gas World reports.
The cargo was carried out in accordance with a long-term agreement with France’s Total, Novatek’s partner in Yamal.
“Japan is an important LNG market and one of the priority destinations in our LNG marketing strategy,” said Leonid Mikhelson, Novatek’s chairman of the management board.
He added that further development of the logistical chain using the Northern Sea Route and a trans-shipment terminal in Kamchatka will expand LNG supplies to Japan “as well as strengthen trade and economic links between our respective countries.”
Novatek has already been shipping LNG to Brazil, China, India, and other countries. The company aims to expand its supply geography and increase the presence in key Asian markets.
Earlier this month, two of Japan’s largest general trading companies, Mitsui & Co. and Mitsubishi Corporation said they will acquire a 10 percent stake in the Arctic LNG 2 project.
The deal is supported by the Japan Oil, Gas and Metals National Corporation (JOGMEC), an independent government corporation. The final agreement, to include Mitsubishi Corporation as well, will be signed, likely in the presence of Russian President Putin, during the G20 summit in Osaka
Novatek, Russia’s largest privately-owned natural gas company, successfully launched the Arctic’s first liquefied natural gas project, Yamal LNG, with investments from France’s Total and China’s National Petroleum Company and Silk Road Fund in 2017. Yamal LNG produces up to 17.5 million tons of LNG per year. Novatek retains a 50.1 percent majority stake in Yamal LNG, while Total holds a 20 percent direct stake and China holds the remaining 29.9 percent.