CNPC finalises Yamal supply deal

Yamal deal: CNPC signs up for LNG volumes

China National Petroleum Corporation has signed a binding sales agreement with Russia's Novatek for liquefied natural gas volumes from the Yamal LNG project in West Siberia.

CNPC has as expected purchased three million tonnes per annum in a 20-year deal at Japan customs-cleared crude prices.

Novatek chairman Leonid Mikhelson said that gaining CNPC as a long-term supply customer would provide the Russian independent and the Chinese oil giant a solid basis for mutually beneficial co-operation and further development of relations.

An outline supply deal had been agreed last October when the Beijing-headquartered explorer bought a 20% stake in the $26.9 billion development, where French oil major Total is also a 20% partner.

Earlier this month France’s Technip secured a major engineering, procurement and module fabrication contract for the Yamal LNG facility.

The project will comprise three liquefaction trains of 5.5 million tonnes per annum, two of which are due to come online in the first phase in 2017 and the third in 2020.

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