Bloomberg News

Novatek, Russian Railways to Spend $1.3 Billion on Rail Project

October 24, 2011

Oct. 24 (Bloomberg) -- OAO Novatek and OAO Russian Railways plan to invest 40.5 billion rubles ($1.3 billion) in rail infrastructure to increase gas-product shipments from Siberia’s Tyumen region, the companies said.

Novatek, Russia’s second-biggest natural gas producer, will spend 30.5 billion rubles to expand a section of the railway in western Siberia over three years starting in 2012. The expense will be considered as advance tariff payments on Novatek’s own freight transportation, Leonid Mikhelson, the chief executive officer, told reporters in Moscow today.

Russian Railways will pay for the rest of the project, aimed at increasing gas product transportation from Novatek’s Purovsky plant in Tyumen, according to an e-mailed statement from the nation’s state rail monopoly.

--Editors: Marie-France Han, Emma O’Brien

To contact the reporter on this story: Marina Sysoyeva in Moscow msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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