Novatek, Russia’s largest private gas producer, has created a joint venture in China with Sinopec and state-owned Russian bank Gazprombank.
Novatek, Sinopec, and Gazprombank signed heads of agreement on establishing a joint venture to market LNG and natural gas to end-customers in China, Novatek said.
The agreement was signed during an official visit of China’s Xi Jinping to Novatek on Wednesday.
Novatek’s head Leonid Mikhelson said, “Chinese companies are investing in the development of Novatek’s LNG projects in the Arctic region of the Russian Federation.
“Creating a joint venture to trade LNG and natural gas in the domestic market of China not only facilitates sales of LNG produced, but also opens up opportunities for investments in the development of the end-customer segment in one of the largest and the fastest-growing gas and LNG market in the world.
He added that this represents another step in implementing our long-term strategy across the entire value chain from the extraction and liquefaction of natural gas to the sale of LNG to the customers.