NLMK and Novatek signed 5-year contracts

NLMK Group has signed long-term agreements with Novatek for the supply of natural gas to all of NLMK Group’s Russian production facilities.

The contracts have been signed for a term of 5 years and will come into effect on January 1st, 2016. The agreements provide for the supply of an annual volume of 2.8 billion cubic meters of natural gas to NLMK Group’s production facilities. This will cover 100% of NLMK Group’s natural gas needs that were previously met by Gazprom and other companies.

Alexander Starchenko, NLMK Vice President for Energy, said: ‘One of the key goals of NLMK Group’s Strategy 2017 is to enhance the efficiency of all production processes. The agreements we’ve reached with Novatek are noteworthy due to the flexible conditions for delivery of the key source of energy for the Group’s energy-intensive business; enabling us to make yet another step towards achieving our strategic goal.’

Lev Feodosyev, Deputy Chairman of the Management Board and Commercial Director of Novatek, said: These contracts are an important step in the execution of our marketing strategy aimed at concluding long-term agreements with our clients. We are very glad to add NLMK to our portfolio, thus obtaining a reliable partner with stable gas consumption.’