Gas Natural Fenosa (GNF) has signed a long term contract with Yamal LNG for the supply of 3.2 billion m3/y of liquefied natural gas (LNG) from the Yamal LNG project in Russia.
LNG will be sourced from the South-Tambeyskoye reservoir, located in the Yamal Peninsula (northwestern Siberia), where Yamal LNG plans to construct a new liquefaction plant with three production trains and a total capacity of 16.5 million tpa of LNG.
Russian company Novatek holds an 80% stake in the Yamal LNG plant, while France’s Total owns the remaining 20%. In September, however, an agreement for the China National Petroleum Corporation (CNPC) to occupy a 20% equity share was struck. This is currently subject to regulatory approval.
The signing of this agreement represents an important step in the implementation of the Yamal LNG project and will help facilitate financing. If the deadlines are met, Gas Natural Fenosa will start receiving gas before the end of 2020.
LNG from this project will help to strengthen the leadership of Spanish enterprise in the Iberian Peninsula, and will support the company's strategy to expand its business in other markets.
Equivalent to 10% of spanish consumption
Yamal LNG will become one of the largest suppliers of Gas Natural Fenosa. The production of 3.2 billion m3 equates to around 10% of annual gas consumption in Spain, figures from 2012 suggest.
Complimenting other LNG contracts
The agreement comes at a time when GNF is seeking to expand its LNG portfolio. In 2011, the company signed a contract with Cherniere, which, as of 2016, will see the latter deliver around 5 billion m3/y from its Sabine Pass liquefaction plant in the US state of Louisiana for two decades.
In September, GNF signed an agreement with Korea Gas Corp., which determined the supply of up to 1.2 million tpa of LNG for three years to the Korean firm.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07112013/gas_natural_fenosa_signs_long_term_yamal_lng_contract/