ENGIE signs long-term liquefied natural gas supply contract with Novatek

Source:ENGIE

The Yamal LNG project, in which Novatek holds a 60% stake, is the first LNG liquefaction project of this size above the Arctic circle to date.

ENGIE and NOVATEK have concluded today an LNG Sales and Purchase Agreement from the Yamal LNG project. Under the FOB agreement, ENGIE will receive 1 million tons per year over a 23-year period starting 2018. This represents 14 cargoes per year which will be delivered from Yamal Trade icebreaker LNG carriers at the Montoir-de-Bretagne LNG terminal (ENGIE), on the western coast of France, where NOVATEK will transfer the LNG, via a transshipment service operated by Elengy, to ENGIE vessels. The LNG will be further delivered anywhere in the world depending on client’s needs.

Gérard Mestrallet, Chief Executive Officer of ENGIE, declared: “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 and our customers concern for a reliable, environmental-friendly energy.”

The Yamal LNG project, in which NOVATEK holds a 60% stake, is the first LNG liquefaction project of this size above the Arctic circle to date. This will be one of the biggest liquefaction plants in the world, planned to start up in 2017 with 16.5 mtpa production capacity, 3 liquefaction trains, 4 LNG storage tanks and up to 15 icebreaker LNG vessels.

ENGIE is a global LNG player and the main LNG importer in Europe. Today, with 16.4 mtpa, ENGIE has the third largest LNG supply portfolio in the world, supplied from six different countries. It controls a large fleet of 14 LNG carriers under medium and long term charter agreements. The fleet is permanently optimized to satisfy ENGIE’s long term commitments and short term opportunities. The Group has also a significant presence in regasification terminals around the world.

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