Yamal Trade will deliver liquefied natural gas from Yamal to Gazprom Marketing & Trading Singapore

Within the international economic forum in Saint-Petersburg the chairperson of the management board of Gazprom Aleksey Miller and the chairperson of the management board of NOVATEK Leonid Mikhelson signed the framework conditions of the agreement for delivery of up to 3 million tons of LNG per year from the project "Yamal LNG" by the company Yamal Trade to the company Gazprom Marketing & Trading Singapore (GM&TS).

By the information given in the press-service of Gazprom, the period of action of the agreement is more than 20 years. Liquefied natural gas will be delivered on terms FOB at a transshipment point in Western Europe for further delivery to markets in the Asia-Pacific region, predominantly to India. FOB is one of conditions of goods delivery, according to which a seller is obliged to deliver his goods to board of a ship at own expenses and to pay for export duties. A purchaser should freight a ship at his own expenses, to pay for the goods and to provide their transportation after their delivery. The price will be defined on the formula with oil indexation. By the words of Aleksey Miller, the agreement seriously strengthens the long-term LNG-portfolio of Gazprom. This is an additional opportunity to increase amounts of global trade and to use own fleet of ships – gas carriers. In his turn Leonid Mikhelson notes that signing of the agreement is one more important step in fulfillment of the project "Yamal LNG". By his words, from the point of view of LNG contracting, all necessary conditions are made for successful opening of project financing. The project "Yamal LNG" foresees building of the plant on production of LNG with capacity in 16 million and 500 thousand tons per year on resource base of the South-Tambey field. Proved and probable reserves of gas in the field make 927 milliard cubic meters. The beginning of production of LNG is planned for the end of 2017. Gazprom Marketing & Trading Singapore included into the group of "Gazprom" works in the sphere of trade, sea transportation and marketing of LNG in the Asia-Pacific region.