NLMK Group and Novatek extend gas supply contract

The agreement is an addition to a 5 year contract that came into force on January 1, 2016. Under the contact, Novatek supplies a total of 2.6 bn cubic meters of natural gas per year to the Lipetsk production site. Supply volumes will remain the same. The additional agreement that came into force on July 1, 2016, extends the term of cooperation to December 31, 2025.

Sergey Chebotarev, NLMK Group Vice President for Energy, said: “An agreement reached last year with Novatek for the supply of a key source of energy for the Group’s energy-intensive operations supported an improvement in the efficiency of energy supplies to our main production sites in Russia. The long-term supply on mutually beneficial terms will further strengthen the market position of both NLMK as the consumer; and Novatekas the supplier of natural gas.”