Novatek Strikes LNG Co-op Deal with Saibu

Novatek has entered into a heads of agreement (HoA) with Japanese gas supplier Saibu Gas, as the Russian LNG producer seeks a greater foothold in Japan’s gas market.

In the document, signed at the Eastern Economic Forum in Vladivostok, the pair stated their plan to form a joint venture to market gas to end customers and develop a business for bunkering and gas-fired power generation in Japan and elsewhere in Asia, Novatek said on September 5. Through this partnership, they would also jointly construct and operate a new LNG storage tank at Saibu’s Hibiki LNG import terminal.

Japan, the world’s largest LNG importer, already buys volumes from Novatek’s 16.5mn mt/yr Yamal LNG plant. Its purchases are set to rise after the launch of the Russia firm’s 19.8mn mt/yr Arctic LNG-2 plant in 2023, where a final investment decision (FID) has just been taken. Japan’s Mitsui and Jogmec, two of the project’s shareholders, have agreed to buy 2mn mt/yr of its production under a long-term offtake deal.