Novatek and Gazprom enter LNG supply agreement

Novatek and Gazprom have signed an agreement for the supply of up to 3 million tpa of LNG between Yamal Trade and Gazprom Marketing and Trading Singapore.

The Heads of Agreement was signed by the Chairman of the Management Board of OAO Gazprom, Alexey B. Miller, and the Chairman of the Management Board of OAO Novatek, Leonid V. Mikhelson at the St. Petersburg International Economic Forum.

The term of the agreement is more than 20 years and the LNG produced by Yamal LNG will be supplied on a free on board (FOB) basis at a transshipment point in Western Europe for further delivery to the Asian-Pacific region, primarily to India. 

The LNG price is crude oil indexed.

Alexey B. Miller said: “This agreement significantly strengthens the long-term LNG portfolio of Gazprom and enables us to increase LNG trading volumes and utilise our own fleet of LNG carriers”.

Leonid V. Mikhelson added: “The signing of this agreement is another important milestone in implementing the Yamal LNG project. With the conclusion of this LNG supply agreement we now have all the necessary preconditions in place from the perspective of LNG contracting for the successful close of project financing”.

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/23052014/novatek_and_gazprom_enter_lng_supply_agreement_653/