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.
"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.
