OOO NOVATEK Chelyabinsk, a wholly-owned subsidiary of OAO NOVATEK, announced on June 28 the execution of a long-term natural gas supply contract with OAO MMK.
The gas supply contract has been signed for a period of 10.5 years until 31 December 2022, and it is estimated that the total volume of natural gas supplied over this period will exceed approximately 50 billion cubic meters (“bcm”). The Company will deliver approximately 2.3 bcm of natural gas during the second half of 2012 to MMK, with volumes expected to be increased to 4.5 bcm in 2013.
“The execution of the 10-year gas supply contract with MMK sets a new precedent in consumer-supplier relations, enabling both companies to establish and implement our respective production plans on a mutually beneficial basis over a long-term perspective. Our marketing policy is aimed at building stable relationships with our partners, and NOVATEK’s resource base allows us to guarantee the reliability of natural gas deliveries” , stated Mikhail Popov, NOVATEK’s First Deputy Chairman of the Management Committee.
MMK’s Deputy General Director Vitaly Bakhmetyev noted: “ In 2003, NOVATEK began to supply natural gas to MMK with an annual volume of 500 million cubic meters of gas. The contract we have signed today meets the interests of both parties and ensures the energy security of MMK Group for more than 10 years. NOVATEK is a reliable partner and we are happy to establish long-term bilateral relations between our companies”.
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LNG World News Staff, June 29, 2012; Image: Novatek