Novatek to supply E.ON Russia in $8.5B gas deal

|About: Novatek Joint Stock Co. ADR (NOVKY)|By:, SA News Editor

Gas producer Novatek (NOVKY.OB) agrees to a 284B ruble deal ($8.5B) to supply more gas to E.ON (EONGY.PK) Russia in 2014-27.

The agreement allows Novatek, Russia's no. 2 gas producer, to strengthen its position in the country's domestic gas market, where it has been increasing market share at the expense of Gazprom (OGZPY.PK) and other companies.

Last year, Novatek accounted for 35% of E.ON Russia's gas purchases of 13.5B cu. meters.