Novatek of Russia will begin supplying liquefied natural gas (LNG) from its Yamal LNG project to Spain’s Gas Natural Fenosa in 2018.
Company’s chairman Leonid Mikhelson told Interfax the deal, the two companies signed in 2013, is valued at over €30 billion (US$33.5 billion), Reuters reports.
Under the agreement signed with GNF, Novatek will be delivering 2.5 million tons of liquefied natural gas per annum for a period of 25 years.
The $27 billion Yamal LNG project is expected to ship its first cargo before October this year.
The liquefied natural gas project in the Yamal peninsula in Siberia is expected to produce a total of 16.5 million tons of LNG per year. Almost all of the volumes from the project have already been contracted.
Shareholders in the Yamal LNG project are Novatek, as the operator with a 50.1 percent stake, CNPC and Total with 20 percent stake each and China’s Silk Road Fund with a 9.9 percent stake.
LNG World News Staff