Novatek Seeks Spot Arctic LNG 2 Deals as Buyers Want Flexibility

  • Producer to sell ‘significant’ volumes from the plant on spot
  • Novatek sees production start at Arctic LNG 2 in 2023: CEO
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Russia’s top producer of liquefied natural gas, Novatek PJSC, aims to sell large volumes from its future Arctic LNG 2 project on the spot market, as buyers across the globe move away from long-term supply deals.

“Consumers want to have more flexibility,” Chief Executive Officer Leonid Mikhelson said during a call with investors Thursday. “We definitely plan to keep a significant volume on the spot market,” he said, commenting on the contract strategy for the second Novatek-led giant LNG plant above the Arctic Circle. The facility is set to start operations next year.