Shell Pens LNG Supply Deal with Novatek
- Business & Finance
Russia’s second largest natural gas producer Novatek has, through its wholly owned subsidiary Novatek Gas & Power, signed a long-term contract with Shell International Trading Middle East for the supply of LNG from the Yamal LNG project.
The contract stipulates annual supply of approximately 0.9 million tons of LNG for more than 20 years from the volumes that Novatek Gas & Power will purchase from Yamal LNG according to the previously signed contract.
”We are currently finalizing Novatek’s contract portfolio for the supply of LNG from the Yamal LNG project. Considering the extensive expertise of Shell, we are planning to further develop our cooperation in the LNG sector,” Chairman of the Management Board of Novatek Leonid Mikhelson said.
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%), China National Petroleum Corporation (20%), and Total (20%).