Novatek’s gas production drops in Q1

Novatek, the developer of the giant Yamal LNG project in Russia, reported on Monday a decline of 8.8% in its gas production in the first quarter of this year.

Russia’s second-biggest natural gas producer said in its preliminary report that it produced 15.7 billion cubic meters (bcm) in the first quarter of 2017, down by 1.52 bcm as compared to the same period a year ago.

Novatek’s total hydrocarbons production dropped 8.5% in the first quarter to 127.7 million barrels of oil equivalent.

Preliminary natural gas sales volumes totaled 18.8 bcm, which was 5.5% higher as compared to the first quarter in 2016, Novatek said.

As at 31 March 2017, Novatek had 0.1 bcm of natural gas and 542 thousand tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory, it added.