NOVATEK held its Corporate Strategy Presentation in London on 9 december, where the Company’s senior management provided operational guidance for production and capital expenditures through 2020, an update on the Yamal LNG project as well as a review of NOVATEK’s performance and strategy implementation to date.
During the presentation NOVATEK provided the following guidance for the period from 2012 to 2020:
A twofold increase in natural gas production and a threefold increase in liquids production to 112.5 billion cubic meters and 13.3 million tons, respectively, by 2020;
A six million ton increase in processing capacity at the Purovsky Gas Condensate Stabilization Plant to 11 million tons per annum by 2014;
Launch of the first three million ton per annum train of the Ust-Luga Transshipment and Fractionation Unit in the fourth quarter of 2012 and the second three million ton per annum train in 2013; and
An increase of approximately 70% in domestic deliveries of natural gas, a threefold increase in liquid hydrocarbon sales volumes as well as details on possible marketing scenarios for future LNG production.
The Company also provided additional details on the Yamal LNG project including the overall status of the project, information on the field and infrastructure development, certain financing details and the results of the testing of the Arc 7 LNG Carrier, which confirmed that its design is able to provide all-season independent navigation.
According to Mr. Mikhelson, “Our strategy is to continue delivering growth through the strategic investment of capital to expand our business. The Yamal LNG project and the development of the fields of the Gydan peninsula are an integral part of our plans to establish NOVATEK as a key supplier of natural gas not only to the Russian market but also to global markets”.