NLMK Group and NOVATEK extend gas supply contract to 2025
NLMK Group, an international steel company with operations in Russia, the United States, and the European Union, has signed an additional agreement to its contract with NOVATEK for the supply of natural gas to the Lipetsk site. Similar additional agreements to contracts for the supply of natural gas to NLMK Group’s other key Russian production facilities* will be signed in the nearest future.
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 NOVATEK as the supplier of natural gas.”
* With the exception of Altai-Koks that does not consume natural gas. NOVATEK supplies NLMK Group production facilities with a total of 2.8 bn cubic meters of gas per year