SG:Novatek gains control of gas distributor in Russian steel region
Bloomberg reported that OAO Novatek, Russia second largest natural gas producer, gained control of supplies to the Chelyabinsk region, a steel and pipe-making hub after buying the regional distributor.
Novatek said Notavek paid RUB 1.55 billion to boost its stake in OOO Gazprom Mezhregiongas Chelyabinsk to 100%.
The gas producer controlled by billionaires Mr Leonid Mikhelson and Mr Gennady Timchenko focuses on supplies to domestic markets because OAO Gazprom, Russia biggest company has a monopoly on exports. Steelmakers OAO Magnitogorsk Iron & Steel and OAO Mechel have plants in the Chelyabinsk region as does steel-pipe maker ChelPipe.
According to the statement Novatek, which previously supplied 30% of the region gas will now meet its demand for more than 15 billion cubic meters a year in full.
Mr Oleg Maximov an oil and gas analyst at Troika Dialog said “This is important because Novatek takes a 100% share in a very strong industrial region. Novatek will be able to decrease sales to Gazprom from the well head correspondingly.”
