Russia: Novatek, Severstal Conclude Gas Supply Contracts

OAO NOVATEK announced the conclusion of new mid-term natural gas supply contracts with OAO Severstal and OAO Severstal-metiz.

The natural gas supply contracts have been signed for a period of five years effective 1 January 2013, with the total volume of natural gas supplied over this period estimated at approximately 12 billion cubic meters.

According to the gas supply contracts, NOVATEK will commence delivering natural gas to Cherepovets Steel Mill, OAO Severstal-metiz (Cherepovets) and Severstal SMC (Kolpino).

The Chairman of NOVATEK’s Management Board Leonid Mikhelson noted: “The conclusion of these gas supply contracts is another step in the implementation of the Company’s commercial strategy, providing for the increase in the proportional share of end-customers in our total sales mix. Severstal is a reliable gas consumer and we are happy to establish partnership between our companies”.

The Chief Executive of the Severstal Russian Steel division Alexander Grubman commented: “This contract supports Severstal’s strategy to diversify supplies in order to strengthen the company’s financial stability”.

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LNG World News Staff, October 02, 2012; Image: Novatek