Press Releases and Events
NOVATEK and Russian Railways sign strategic partnership agreement
Moscow, 02 March2012. OAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that OAO Russian Railways (‘Russian Railways’) CEO Vladimir Yakunin and NOVATEK CEO Leonid Mikhelson signed a Strategic Partnership Agreement (‘the Agreement’) until 2020.
The Agreement emphasizes the mutual cooperation between the two companies relating to transportation of liquid hydrocarbons from NOVATEK’s wholly-owned Purovsky Processing Plant (“Purovsky Plant”) and the modernization and development of railway infrastructure to increase capacity on the “Limbey – Surgut – Tobolsk” section of the Sverdlovsk railways.
The Agreement provides for the transport of 100% of the volumes produced at the Purovsky Plant (stable gas condensate and LPG) and takes into consideration the expected growth in production capacity and the possibility to increase transportation capacity up to 12 million tons per annum.
The Agreement stipulates that Russian Railways is responsible for increasing the capacity of the “Limbey – Surgut – Tobolsk” section at an estimated cost of RR 41.3 billion, of which RR 30.5 billion will be financed by NOVATEK according to the approved financing and construction schedule. NOVATEK’s investment in the infrastructure development will be reimbursed against future transportation volumes as agreed by the parties.
PAO NOVATEK is one of the largest independent natural gas producers in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Area, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.