NOVATEK concludes long-term LNG contract with ENGIE
On June 2, 2015, OAO NOVATEK announced that Novatek Gas & Power, a wholly owned trading subsidiary of NOVATEK, concluded a long-term contract with ENGIE (formerly GDF SUEZ) on the supply of LNG from the Yamal LNG project.
The 23-year contract stipulates annual supply of one (1) million tons of LNG from the volumes that Novatek Gas & Power will purchase from Yamal LNG according to the previously signed contract. The LNG will be supplied FOB Montoir-de-Bretagne (the western coast of France), where it will be transferred to the LNG vessels of the ENGIE’s fleet.
Chairman of the Management Board of NOVATEK, Leonid Mikhelson stated: “Signing another long-term binding agreement on LNG supply from the Yamal LNG Project ensures well balanced LNG sales portfolio and contributes to closing the Project’s external financing. ENGIE is a reliable partner, and we expect that this cooperation will enable us to gain additional expertise in LNG marketing”.
Gerard Mestrallet, Chief Executive Officer of ENGIE, declared: “The signature of this SPA is a great achievement for ENGIE and NOVATEK. These volumes will complement and diversify ENGIE long term supply portfolio. They will allow us to address the growing LNG demand, as well as our customers concern for a reliable, environmental-friendly energy”.
OAO NOVATEK is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s gas production and approximately 16% of the world’s gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
Novatek Gas & Power is a 100% trading subsidiary of NOVATEK involved in sales of gas and liquid hydrocarbons on the international markets.
The Yamal LNG Project envisages the construction of an LNG plant with a capacity of 16.5 million tons per annum based on the hydrocarbon resources of the South-Tambeyskoye field. The start of LNG production is planned for 2017. Shareholders of Yamal LNG are NOVATEK (60%), CNPC (20%), Total (20%).
ENGIE is a global LNG player and the main LNG importer in Europe. Today, with 16.4 mtpa, ENGIE has the third largest LNG supply portfolio in the world, supplied from six different countries. It controls a large fleet of 14 LNG carriers under medium and long term charter agreements. The Group has also a significant presence in regasification terminals around the world.
