Rosneft and EVRAZ signed agreement on natural gas supply

The agreements were signed during a working visit of Chairman of Rosneft Management Board Igor Sechin to Yekaterinburg.

The signed agreements provide for supplies of natural gas in a volume around 14 bcm of gas to the companies of EVRAZ Group, effective from January 1st, 2016 for 10 years.

Commenting on the signed documents, Rosneft’s Board Chairman Igor Sechin said, “Rosneft is one of Russia’s largest independent gas producers. The Company’s resource base enables us to increase gas production steadily. New agreements with EVRAZ guarantee long-term monetization of crude materials produced by Rosneft subsidiaries.”

EVRAZ President Alexander Frolov noted: “Agreement with Rosneft will provide sustainable guaranteed supplies of natural gas to our enterprises in Sverdlovsk Region, which is especially important given the volatility at the steel markets”.

Rosneft’s subsidiary Itera Oil and Gas Company has been delivering natural gas through its sales company Uralsevergaz to consumers of Sverdlovsk Region since 1999.

Rosneft annually supplies over 14 bcm of natural gas to industries, power companies, social services and individual consumers in Sverdlovsk Region, being a sole supplier of gas for individuals along with housing and public utilities companies, with the annual volume of deliveries totaling 2.5 bcm.