Novatek, Engie conclude LNG contract

Novatek’s Gas & Power division has concluded a long-term contract with Engie (formerly GDF Suez) for the supply of LNG from the Yamal project.

The 23-year contract stipulates the annual supply of 1 million t of LNG from the volumes that Novatek Gas & Power will purchase from Yamal LNG, according to a previously signed contract. The LNG will be supplied on a FOB basis to Montoir-de-Bretagne, France, where it will be transferred to Engie’s LNG vessels.

Comments

Commenting on the conclusion of the contract, Novatek Chairman, Leonid Mikhelson, stated: “Signing another long-term binding agreement on LNG supply from the Yamal LNG Project ensures well balanced LNG sales portfolio and contributes to closing the Project’s external financing. Engie is a reliable partner, and we expect that this cooperation will enable us to gain additional expertise in LNG marketing”.

Gerard Mestrallet, CEO of ENGIE, added: “The signature of this [sale and purchase agreement] SPA is a great achievement for Engie and Novatek. These volumes will complement and diversify Engie’s long-term supply portfolio. They will allow us to address the growing LNG demand, as well as our customers concern for a reliable, environmental-friendly energy.”

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02062015/novatek-and-engie-sign-lng-spa-873/