Russian steelmaker NLMK has signed a long-term contract with Russia’s largest independent gas producer Novatek. The gas company will supply all of NLMK’s production facilities.
The contract comes into effect on 1 January 2016 and provide for the supply of annual volume of 2.8 billion cubic metres of natural gas, covering all of NLMK’s natural gas needs, which were previously met by Gazprom and other suppliers.
According to NLMK’s vice president for Energy, Alexander Starchenko, the aim is to enhance the efficiency of all production processes. “The agreements we’ve reched with Novatek are noteworthy due to the flexible conditions for delivery of the key source of energy for the Group’s energy-intensive business,” he said.
Novatek’s deputy chairman of the management board and commercial director, Lev Feodosyev, said the contracts signed were an important step in the execution of the gas company’s marketing strategy aimed at concluding long-term agreements with its clients. “We are very glad to add NLMK to our portfolio,” he said.