Russia: Novatek Concludes Long-Term Natural Gas Supply Deal

OAO NOVATEK, announced today the conclusion of long-term natural gas supply contracts with OAO E.ON and OAO Fortum. The gas supply contracts have been signed for a period of 15 years starting from January 1, 2013 with the total volume of natural gas supplied over this period is estimated to exceed 180 billion cubic meters.

According to the supply contracts NOVATEK will deliver natural gas to the Smolenskaya GRES, the Surgutskaya GRES-2, the Shaturskaya GRES and the Yayvinskaya GRES power stations of E.ON, as well as to the Nyaganskaya GRES and power stations of Fortum in Chelyabinsk.

The Chairman of NOVATEK’s Management Board Leonid Mikhelson noted: “The conclusion of these long-term natural gas supply contracts are consistent with the Company’s commercial marketing strategy and they will enable NOVATEK, E.ON and Fortum to establish and implement their respective production plans on a stable and mutually beneficial basis over a long-term perspective.”

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LNG World News Staff, August 28, 2012