UPDATE 1-Novatek says Gazprom not its agent in landmark Europe sales deal

* Novatek to sell 2 bcm of gas to EnBW annually for 10 years

* Novatek says Gazprom is not an agent in the deal

* Novatek shares up 1.5 percent, outperform market (Combines stories, adds detail, share price)

MOSCOW, Aug 14 (Reuters) - Novatek said Russia's export monopoly will play no agency role in a deal to sell 2 billion cubic metres of gas per year annually to German utility EnBW, a breakthrough on the European market for Russia's No. 2 gas producer.

As of 1450 GMT Moscow-traded shares in Novatek were up 1.51 percent, outpacing a 0.7 percent rise in the broader market .

Novatek's Chief Financial Officer Mark Gyetvay called the agreement a "trading operation" between Novatek's Swiss-based arm and the Germany company, downplaying suggestions that Novatek managed successfuly challenge the gas export monopoly of Russia's top gas producer Gazprom.

Gyetvay declined to identify the source of the gas nor disclose any further details of the contract.

Last month, sources told Reuters that the deal will be conducted via Novatek Gas&Power, Switzerland-based trading arm of Novatek, saying that the company won't be exporting gas from Russia, the holder of the world's largest natural gas reserves.

"This contract is primarily trading operations between Novatek Gas&Power and the counterparty," Gyetvay said during a conference call, also confirming that the deal to sell 2 billion cubic metres of gas a year for the next 10 years will start from the fourth quarter.

Novatek Gas&Power, a Zug-based enterprise, was established by Novatek under the name of Runitek to trade what the company calls "liquid fuels" such as gas condensate.

Novatek is forced to sell the gas it produces only in Russia, where prices are regulated by the government, under the provisions of a 2006 law which gives Gazprom exclusive rights to sell the Russian gas abroad.

Novatek, controlled by the co-owner of Gunvor trade house, Gennady Timchenko, and Chief Executive Officer Leonid Mikhelson, has been seeking a way to gain access to lucrative foreign gas markets.

The company has signed an agency agreement with Gazprom, which will facilitate liquefied natural gas exports from the Yamal peninsula, where Novatek, in partnership with French major Total, will start produce the frozen gas later in the decade. (Reporting by Vladimir Soldatkin; Editing by Melissa Akin)