Yamal LNG and Gazprom Marketing & Trading Singapore sign LNG agreement
At the St. Petersburg International Economic Forum, Chairman of the Management Board of OAO NOVATEK (“NOVATEK” and/or the “Company”) Leonid V. Mikhelson and Chairman of the Management Board of OAO Gazprom Alexey B. Miller signed Heads of Agreement (“Agreement”) for the supply of liquefied natural gas (LNG) between Yamal Trade and Gazprom Marketing & Trading Singapore. The document provides for the supply of up to three (3) million tons of LNG per annum produced by Yamal LNG.
The term of the Agreement is more than 20 years and LNG will be supplied on the 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.
Chairman of the Management Board of OAO Gazprom, Alexey B. Miller, noted “This agreement significantly strengthens the long-term LNG portfolio of Gazprom and enables us to increase LNG trading volumes and utilize our own fleet of LNG carriers”.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated “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”.
Source: OAO Novatek (NVTK)