Japan’s Saibu Gas has become the new partner of the Russian LNG project operator Novatek following a heads of agreement signed on Thursday. 

According to the agreement, the parties intend to establish a joint venture focused on marketing LNG and natural gas to end customers and developing the business for bunkering and gas-fired power generation in Japan and the Asian region.

Novatek said in a statement that the parties are also looking to partner up on constructing and operating a new LNG storage tank at the Hibiki LNG terminal.

“We have made another important step forward in implementing our strategy to enter the end customer market in key gas consuming countries, among which Japan is one the biggest markets and long-time consumer of LNG,” noted Novatek’s head Leonid Mikhelson.

“The creation of our joint venture with Saibu Gas allows us to increase the marketing flexibility of natural gas supplies and create additional opportunities for LNG sales in this important gas consuming region,” he concluded.