Gazprom Secures 3 Mln Tons of LNG from Yamal Trade

The document will be effective for a period of over 20 years. LNG will be supplied under FOB (free on board) terms in a transfer point of Western Europe to be further delivered to Asia-Pacific markets, primarily to India. The price will be determined using the formula with oil indexation.
This Heads of Agreement will significantly reinforce the long-term LNG portfolio of Gazprom. It is an additional way to expand the global trade and use our own fleet of LNG carriers, said Alexey Miller.
It is another crucial step in implementing the Yamal LNG project. As regards LNG contracting, all the necessary conditions are provided for the successful launch of project financing, said Leonid Mikhelson.
The Yamal LNG project envisages the construction of an LNG plant with an annual capacity of 16.5 million tons, with natural gas to be delivered from the Yuzhno-Tambeyskoye field. The fields proven and probable gas reserves amount to 927 billion cubic meters. LNG production will start in the end of 2017. The project operator is Yamal LNG, with NOVATEK holding 60 per cent, Total 20 per cent, and CNPC 20 per cent in the company. Yamal Trade is a 100 per cent subsidiary of Yamal LNG.
Being a part of Gazprom Group, Gazprom Marketing & Trading Singapore is engaged in LNG trade, marine transportation and marketing in the Asia-Pacific region. 

Press Release, May 26, 2014