Gazprom buys Yamal LNG volumes
Gazprom’s Singapore marketing and trading arm has agreed to buy up to three million tonnes per annum of liquefied natural gas from Novatek’s Yamal LNG project in West Siberia to sell to Asian buyers.
The Russian state giant’s chief executive Alexei Miller and Novatek’s chairman Leonid Mikhelson signed heads of agreement for the supply deal at the St Petersburg Economic Forum.
Miller said the deal “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”.
Mikhelson said that the Yamal LNG supply deal meant that the Russian independent “now has all the necessary preconditions in place from the perspective of LNG contracting for the successful close of project financing”.
The deal will run for more than 20 years with volumes supplied on a free on board basis at a trans-shipment point in Western Europe for further delivery to the Asian-Pacific region, primarily to India, Gazprom said.
The LNG price is crude oil indexed.
The latest deal comes days after China National Petroleum Corporation agreed to purchase 3 mtpa from the $26.9 billion development, to which it farmed in on a 20% stake last year.
French oil major Total is also a 20% partner.
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.
Its feedstock is the the South-Tambeyskoye gas field, which holds proven and probable reserves of 927 billion cubic metres according to Russia’s PMRS system.
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