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Novatek agrees to supply more gas to E.ON Russia

04th September 2013

Novatek signs USD 8.5bn deal with E.ON’s Russia subsidiary to supply additional gas from 2014 to 2027

A Russian pipeline
While no official gas volumes have been disclosed, the gas will be supplied to E.ON Russia’s Surgut power plant in Western Serbia

One of Russia’s largest gas providers, Novatek, has agreed an USD8.5bn deal with the Russian subsidiary of German power and gas company E.ON to increase its supply of gas.

 

While no official gas volumes have been disclosed, the gas will be supplied to E.ON Russia’s Surgut power plant in Western Serbia and start in 2014, according to Reuters. The deal will last until 2027.

 

E.ON Russia is also supplied with gas from state-owned Rosneft and privately owned Lukoil. Last year, Novatek accounted for 35 per cent of E.ON Russia’s gas purchases of 13.5 billion cubic meters.

 

Novatek is expanding deals for distribution of its natural gas. In August, the company agreed a deal with German utility firm EnBW. The company will pay Novatek USD 730m per year.