Magnitogorsk Iron & Steel Works (MMK) signed a long-term agreement for natural gas supply with Novatech Chelyabinsk (a 100% daughter enterprise of Novatech) in order to ensure the current activities and further development of MMK Group. The contract is valid for 10.5 years, through December 31, 2022. Over this decade, the total amount of natural gas shipments is expected to exceed 50bn cubic meters.

Under this contract, Novatech Chelyabinsk will supply MMK with 2.3bn cubic meters of natural gas in the second half of 2012 and 4.5bn cubic meters of gas in 2013.

‘MMK started relying on Novatech’s natural gas in 2003, when 500m cubic meters were delivered every year. The contract that was signed today meets the needs of both parties involved and guarantees over ten years of fuel and energy security for MMK Group enterprises. Novatech is a dependable partner, and we can only welcome the creation of long-term bilateral ties between our companies,’ says MMK Deputy DG Vitaly Bakhmetiev.

‘Signing a ten-year contract with MMK means we have set a precedent for the new natural gas supplier and consumer relationship. This relationship makes it possible for both companies to benefit from the possibility of long-term production planning. Our marketing policy is based on stable relations with our partners. Novatech’s resource base allows us to guarantee that the natural gas shipments will be unfailing,’ says Novatech First Deputy Chairman Mikhail Popov.