Novatek Gas & Power, a subsidiary of Russian Novatek has signed a long-term contract with French energy firm Engie for the supply of liquefied natural gas (LNG) from Yamal LNG project.
Engie chief executive officer Gerard Mestrallet said: "The signature of this SPA is a great achievement for ENGIE and NOVATEK.
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"These volumes will complement and diversify Engie 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."
Under the 23 year contract, Novatek Gas & Power will supply 1 million tons of LNG from the volumes it will buy from the project. Novatek Gas & Power has previously signed a deal to source LNG from the project.
Novatek Gas & Power will supply the LNG Free On Board (FOB) at Montoir-de-Bretagne, which is located along the western coast of France. From there, it will be transferred to the LNG vessels operating under Engie’s fleet.
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By GlobalDataNovatek Management Board chairman Leonid Mikhelson said: "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".
Image: Yamal LNG project. Photo: courtesy of Novatek.
