July 21, 2008

Gazprom, Spanish Gas Natural Sdg Agree on Lng Supplies

MOSCOW. July 21 (Interfax) - Gazprom Marketing & Trading (GM&T), the British trader of Gazprom (RTS: GAZP), and Spanish Gas Natural SDG have signed a framework agreement on liquefied natural gas supplies, GM&T said on Monday.

The agreement signed on July 2 spells out the terms and structure of LNG supplies under favorable market conditions.

The company said that this was a good opportunity to broaden LNG trade with the launch of the Shtokman gas project in 2013-2014.

The agreement also stipulates strategic cooperation in LNG supplies and selling of electricity and quotas on greenhouse gas emissions.

The company said that the agreement mirrored the interest of both companies in strategic partnership.

Gas Natural SDG is the main unit of Gas Natural Group, which incorporates energy companies based in Spain and Latin America. Gas Natural and Spain's Repsol YPF SA agreed on setting up a Stream joint venture in 2005 for producing and selling LNG. The partners said they would deliver 5.5 billion cubic meters of LNG to consumers in Japan, China and South Korea in 2009.

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