Within the Petersburg International Economic Forum Rosneft and EuroChem signed a 6-year contract for gas supplies.
The document was signed by Rosneft President, Chairman of the Management Board Igor Sechin and the General Director of OJSC “Mineral and Chemical Company “EuroChem” Dmitriy Strezhnev.
The agreement envisages a total volume of 9.84 bcm of gas supplies to EuroChem production facilities until the 31st of December of 2019.
The signed agreements lay the foundation for the expansion of cooperation between companies in the gas sphere.
Commenting on the signing Igor Sechin said: “We are proud to give a start to the cooperations between our companies. The long-term contract, signed today, is the evidence that Rosneft and EuroChem see a great potential for the expansion of our mutually beneficial partnership. We consider that the cooperation between the two Companies should reach beyond gas trading.”
Dmitriy Strezhnev noted that: “Natural gas is an essential raw material for the production of ammonia, the main component of nitrogen fertilizers. The contract signed today with on of the biggest producers of natural gas will allow to satisfy 64% of the needs of one of our production facility, located in the Tula District. The strategy of EuroChem envisages a substantial development of production and we need gas supplies to our facilities to be diversified. This will allow us to secure our competitive performance on the global market and Rosneft will contract in our company a responsible partner.”
Press Release, May 23, 2014; Image: EuroChem