French company grabs Russian LNG

PARIS, June 3 (UPI) -- French energy company Engie said its sales and purchase agreement with its Russian counterparts will address global needs for liquefied natural gas.

The French company signed a deal with Russia's Novatek to receive 14 shipments of liquefied natural gas per year for the next 23 years. The shipments, which represent 1 million tons of LNG per year, will be delivered from a gasification project on the Yamal peninsula of Russia to a terminal on the western coast of France.

"They will allow us to address the growing LNG demand and our customers concern for a reliable, environmental-friendly energy," Engie Chief Executive Officer Gerard Mestrallat said.

Novatek controls 60 percent of the Yamal LNG project in the arctic north of Russia, alongside French energy company Total and the China National Petroleum Corp.

The Yamal LNG project has the capacity to produce about 16.5 million tons of natural gas and exports could target consumers in the Far East. As many as 16 ice-class carriers will be designated to ship LNG year-round to global consumers.

The French company, which was formerly known as GDF Suez, said once LNG is transferred to its vessels, the gas will be "delivered anywhere in the world depending on client's needs."

Yamal will start operations in 2017. The French company has the third largest LNG supply portfolio in the world.