Russia’s Novatek has signed two binding agreements to sell a minority interest in its proposed Arctic LNG 2 liquefied natural gas project with Chinese state player CNOOC Ltd. and China National Oil and Gas Exploration and Development Company (CNODC).

Under one deal, with an undisclosed value, CNOOC Ltd will join the LNG project in Russia’s Gydan peninsula in West Siberia after acquiring 10% interest.

In a separate deal, CNODC will also buy a 10% stake in the Arctic LNG 2 project.

CNODC is a subsidiary of China National Petroleum Corporation (CNPC).

Arctic LNG 2 is expected to produce close to 20 million tonnes per annum of LNG, with the first train to be commissioned before the end of 2022.

“We are very glad that CNOOC has joined our Arctic LNG 2 project as our new partner, since China represents one of the key consuming markets for our LNG sales,” Novatek’s chairman of the management board Leonid Mikhelson said.

“Arctic LNG 2 will be a game-changer in the global gas market, and our proven track record to successfully build an LNG facility in the Arctic zone, combined with a proven logistical model with access to prospective markets and large hydrocarbon resource base will ensure the successful implementation of this world class project,” Mikhelson said.

For Arctic LNG 2, Novatek is targeting about 50% offtake prior to the final investment decision, expected later this year.

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Novatek dishes out Arctic LNG 2 deals