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Project Insights

Novatek’s China foray aims to unlock long-term demand

The Russian independent wants to find more Chinese customers for its LNG as part of efforts to build a presence in the downstream end of the world’s fastest-growing gas market The Russian independent wants to find more Chinese customers for its LNG as part of efforts to build a presence in the downstream end of the world’s fastest-growing gas market.
By Colin Shek 6 days ago Asia Pacific / Supply & Demand 0 34293
Construction work on Novatek's Yamal LNG project in the Russian Arctic. (Novatek)

Novatek’s agreement with Sinopec last week to establish a joint venture that will market and sell the Russian Arctic producer’s LNG in China shows how foreign players are beginning to stake a claim in China’s downstream – which is already the industry’s most liberalised segment of the oil and gas sector.

The JV between Sinopec, Novatek and Gazprombank will purchase LNG from Novatek’s portfolio and sell it to end-users in China. Novatek operates the 16.5 mtpa Yamal LNG plant in northern Russia, which includes China National...