Russian gas producer OAO Novatek announced on Wednesday that its wholly owned subsidiary Novatek Gas & Power has signed a long-term LNG contract with Shell.

Novatek signs LNG contract with Shell

MOSCOW, June 5, 2015 – Russian gas producer OAO Novatek announced on Wednesday that its wholly owned subsidiary Novatek Gas & Power has signed a long-term LNG contract with Shell.

Under the terms of the contract, the company is expected to supply .82 million tonnes of LNG from the Yamal LNG project located in the Russian Artic for the next 23 years. Novetek signed a similar contract with French electric utility company Engie earlier in the week.

“We are currently finalising 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,” Leonid Mikhelson, chairman of Novatek’s management board, said in a company press release.

The Yamal LNG project is one of the largest petrochemicals in the Russian Artic and is expected to increase capacity to 16.5 million tonnes of gas a year. Novatek owns 60 percent alongside Chinese state-owned company CNPC (20 percent) and Total (20 percent).

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