CNPC, Yamal LNG Enter Supply Contract

Yamal LNG said it has concluded a binding contract for the supply of liquefied natural gas (LNG) with China National Petroleum Corporation (CNPC).

The contract provides for the supply of three million tons of LNG per annum at delivered ex-ship (DES) terms for a period of 20 years. LNG price is indexed to the Japanese Crude Cocktail.

Chairman of the Management Board of Novatek (the major shareholder of Yamal LNG), Leonid V. Mikhelson said: “Final consolidation of the long-term agreements on gas supplies from the Yamal Peninsula to one of the fastest growing energy markets in the world will provide a solid basis for the mutually beneficial cooperation and further development of relations with our Chinese partners, enabling them to increase the share of “clean” fuel in the energy balance of China.”