Rosneft, InterRAO sign 25-year gas contract

Rosneft, Russia’s largest petroleum company, has signed a 25-year contract for Novateka gas deliveries worth about $80 billion with InterRAO, Reuters reports.

Inter RAO UES signed a contract with Novateko in 2009, switching to the largest independent Russian gas extractor Gazprom in 2009.

E.On Russia, operator of six Russian state regional power plants, and Forum signed contracts with Novatek in August. The Magnitogorsk Metallurgy Factory and Severstal became independent gas suppliers.

Rosneft President Igor Sechin said in early October that the company was planning to increase gas extraction from 26 billion to 100 billion cubic meters annually. Rosneft planned to provide 34 billion cubic meters of gas to consumers in 2013-2014, 37 billion in 2015, 72 billion in 2016, 77 billion in 2017.

Rosneft needs to provide 4.65 billion cubic meters of gas for the Surgut state regional power plant N2 of E.On Russia. It will also provide fuel worth over $500 million to Fortum.