MOSCOW (Reuters) - Gas producer Novatek
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
E.ON Russia and Surgutneftegas both declined to comment on gas supplies.
Last year, Novatek accounted for 35 percent of total E.ON Russia's gas purchases of 13.5 billion cubic meters, on a par with Surgutneftegas, according to E.ON Russia's financial report.
As of 0815 GMT (3:15 EDT), Novatek shares were up by 0.07 percent, outperforming a 0.4 percent decline of the broader Moscow stock market <.MCX>.
(This story corrects years of the deal to 2014-2027, not 2014-2017)
(Reporting by Vladimir Soldatkin and Anastasiya Lyrchikova; editing by Megan Davies)