Novatek Signs Second Long-Term LNG Deal in Two Days

Novatek Gas & Power, a wholly owned trading subsidiary of Novatek, signed a 20-year contract for annual supply of approximately 0.9 million tons of LNG with Shell International Trading Middle East for the supply of LNG from the Yamal LNG project.

“We are currently finalizing Novatek’s contract portfolio for the supply of LNG from the Yamal LNG project. Considering the extensive expertise of Shell, we are planning to further develop our cooperation in the LNG sector,” Chairman of the Management Board of Novatek Leonid Mikhelson said in a note released on Thursday.

Commenting the news, Shell confirmed its commitment to cooperate with Russian companies.

“Russia is a country of great importance for Shell” Shell Vice President of LNG Trading, David Wells, said. 

On Tuesday, the Russian company announced that a slightly bigger contract (23-year deal for one million tons of LNG a year) with France’s ENGIE (formerly GDF Suez) for the supply of LNG from the Yamal LNG project.  

Meanwhile, according to Kyiv Post, the Russian side is mulling offering Naftogaz a discount on the price of gas - in the form of a reduce export duty - till the end of year.