Novatek’s Q1 gas production up, LNG sales down

Russia’s largest independent natural gas producer Novatek boosted its production in the first quarter of this year while the company’s sales decreased.

Novatek said Thursday that natural gas production rose by 2.2 percent year on year to 19.1 billion cubic metres.

The Russian company’s production of oil and gas condensate increased in the January – March period by 2 per cent to 3.05 million tonnes.

Preliminary natural gas sales volumes, including liquefied natural gas volumes, totaled 20.69 billion cubic meters, logging a decline of 6.8 per cent year-on-year.

Novatek sold 2.45 billion cubic meters of LNG volumes on international markets.

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

As at 31 March this year, Novatek had 0.3 billion cubic meters of natural gas, including LNG, and 620 thousand tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory, it added.