Gas Natural Fenosa unloads first shipment of Russian gas in Spain
- This is the first shipment under a contract with Yamal LNG (in which the majority shareholder is Novatek, alongside the French company Total and the Chinese companies CNPC and Silk Road Fund) with a capacity for 172,600 cubic metres of gas, which equates to one month’s consumption in Madrid.
- The company is guaranteeing supply security and diversification in Europe with the first Russian LNG contract.
GAS NATURAL FENOSA has unloaded the first shipment of Russian liquefied natural gas (LNG) in Spain under a long-term contract with a capacity for 172,600 cubic metres of gas, which equates to one month’s consumption in Madrid, and will be allocated to supplying south-west Europe.
It is the first shipment of a total 37 per year that will arrive in this European zone by 2041 under the contract signed by GAS NATURAL FENOSA with the Russian company Yamal LNG (in which the majority shareholder is Novatek, alongside the French company Total and the Chinese companies CNPC and Silk Road Fund) five years ago for a total of 3 bcm (billion cubic metres) per year for 24 years. This represents 8% of total annual gas consumption in the country.
This first ship (designed for the Arctic crossing) is called Fedor Litke, after the Arctic geographer and explorer, and has completed an 11-day journey from Siberia to the Reganosa terminal at the Port of Mugardos (A Coruña). It was received upon arrival by José María Egea, General Manager for Energy Planning of GAS NATURAL FENOSA; the Russian Ambassador to Spain, Yuri Korchagin; the Russian Government Delegate for Economic and Trade Affairs, Galina Kurochkina; and the Director for Business Development of the Russian company NOVATEK, Andrey Popov.
“The contract with Yamal, just like the contract recently signed with Algeria, helps guarantee stability of supply to Spain. The contract also broadens the company’s portfolio of strategic suppliers, thereby strengthening supply diversification to our country and Europe by being the first long-term liquefied natural gas supply contract from Russia to the continent. Furthermore, it reaffirms our company’s position as the leading LNG operator in the Atlantic”, said Francisco Reynés, Chairman of GAS NATURAL FENOSA.
Furthermore, due to the agreement between GAS NATURAL FENOSA and Yamal LNG, the Iberian Peninsula is no longer the only zone in Europe to not have Russia as a supplier, and is further strengthening its range of supply sources following the recent renewal of a contract with Algeria.
This natural gas comes from the South-Tambeyskoye gas site on the Yamal Peninsula (north-west Siberia). The consortium developer of the Yamal plant is owned by Novatek and the French company, Total.
“The LNG in this project helps guarantee the leading position of the Spanish multinational on the Iberian Peninsula, and serves to support the company’s strategy to expand its business into other markets”, explained José María Egea, General Manager for Energy Planning at the company.
Managing a fleet of 12 methane tankers, GAS NATURAL FENOSA is the largest natural gas operator in Spain and one of the largest in the world. The company maintains high supply diversification through its contracts with Algeria, the United States, Nigeria, Trinidad and Tobago, Russia, Qatar and Norway.
Scope and subject: LNG, International
Madrid, 21 June 2018