Novatek sells 23 million tons of LNG to French Engie

The trader of Novatek Novatek Gas & Power has signed a long-term contract for the supply of liquefied natural gas (LNG) from Yamal LNG with the French company Engie (formerly GDF Suez), Novatek, which owns 60% of the project, reports. The contract was signed for 23 years and provides for the annual supply of 1 million tons of LNG (1.3 billion cubic meters). Thus, for the duration of the contract, Novatek Gas & Power will supply 23 million tons of LNG, or about 30 billion cubic meters to Engie. The contract’s value wasn’t disclosed. Now gas is exported from Russia only by Gazprom; in the first quarter it delivered gas to Europe at the average price of $290 per 1 thousand cubic meters.

Novatek Gas & Power will supply gas to Engie under FOB Montoir-de-Bretagne (the west coast of France), where it will be reloaded onto tankers of the buyer.