Interfax reported that OJSC E.ON Russia and OJSC Lukoil has signed an agreement for the delivery of associated oil gas between 2013 and 2022.

Total supply of gas in the agreement comes to 2.24 billion cubic meters with the minimum volume at 1.52 billion cubic meters. According to the contract's terms, payment will be made for the actual delivery of gas volume. The deal's value has yet to be made public.

E.ON Russia board of directors approved the agreement with Lukoil a month ago. The gas will be supplied to Yaivinskaya state district power plant.

E.ON Russia commissioned a new steam-gas unit last year at Yaivinskaya GRES with 400 MWt in capacity. With the new capacity, Gazprom's gas pipeline and branch capacity cannot meet the station's total demand for fuel. Therefore, the station's older blocks had to use coal to fuel operations.

Source - Interfax

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