OAO NOVATEK announced the conclusion of Heads of Agreement for the supply of liquefied natural gas (LNG) between Yamal LNG and China National Petroleum Corporation ('CNPC'). The document provides for the supply of no less than three (3) million tons of LNG per annum at delivered ex-ship (DES) terms for a period of 15 years with possible supply extension, with the LNG price is indexed to the Japanese Crude Cocktail.

Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated 'We welcome the achievement of a mutually beneficial agreement on LNG supplies to the fast growing Chinese market'.

Tags: China National Petroleum Corp., NOVATEK