(Corrects years of the deal to 2014-2027, not 2014-2017)
MOSCOW, Sept 4 Gas producer Novatek
has agreed an 284 billion rouble ($8.5 billion) deal to supply
more gas to E.ON Russia in 2014-2027, the Russian
subsidiary of Germany's E.ON, E.ON Russia said on
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
other companies, such as state-owned Gazprom.
The volumes would be supplied to E.ON Russia's Surgut power
plant in Western Siberia.
A source close to the deal said that the increase would come
at the expense of Surgutneftegas, Russia's No.3 oil
E.ON Russia and Surgutneftegas both declined to comment on
Last year, Novatek accounted for 35 percent of total E.ON
Russia's gas purchases of 13.5 billion cubic metres, on a par
with Surgutneftegas, according to E.ON Russia's financial
Rosneft and Lukoil also supply E.ON
Russia with gas.
As of 0815 GMT, Novatek shares were up by 0.07 percent,
outperforming a 0.4 percent decline of the broader Moscow stock
($1 = 33.4900 Russian roubles)
(Reporting by Vladimir Soldatkin and Anastasiya Lyrchikova;
editing by Megan Davies)