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Novatek reported lower production and sales in the Q2 2020

Novatek reported lower production and sales in the Q2 2020

Moscow, July 13 - Neftegaz.RU. Novatek´s natural gas production declined by 2.2 % year-on-year to 18.5 billion m3. The total production of hydrocarbons in January-March fell 2.5 % to 145.3 million barrels of oil equivalent.

Furthermore, natural gas sales volumes, including LNG, declined 9.9 % in the quarter to 16.9 bcm. Novatek said it sold 2.47 bcm of LNG on international markets, a drop of 32.3 % when compared to the Q2 last year.

The company attributed the decline to lower spot market sales from its Yamal LNG export terminal in the Russian Arctic.

The drop was “due to the decrease of Yamal LNG shareholders’ share, including Novatek’s share, of LNG volumes sold on the spot market, and a corresponding increase of Yamal LNG direct sales under long-term contracts,” it said.

Novatek’s 17.4 mtpa Yamal LNG export plant includes 3 LNG trains of 5.5 mtpa each and one train with a capacity of 900,000 tons per year.

The 1st LNG train began production in the Q4 of 2017, while trains 2 and 3 were launched in July 2018 and November 2018, respectively.

Russian largest independent natural gas producer plans to reach a total of up to 70 mtpa of LNG production capacity by 2030 and has lined up several new developments.

These include the company’s 2nd Arctic LNG project with a 6.6 mtpa capacity. Novatek recently said the project was about 19 % complete and expects to launch the 1st LNG train in 2023.

To read the full story in Russian.