Russia’s Novatek says ships first LNG cargo

Russia’s Novatek said Thursday it has supplied its first ever cargo of liquefied natural gas, marking the company’s first step into global LNG trading business.

The cargo was sourced from Trinidad & Tobago’s LNG plant in Point Fortin and delivered to the Quintero import terminal in Chile.

The shipment was made by Novatek Gas & Power, a trading subsidiary of Novatek involved in sales of gas and liquid hydrocarbons on the international markets.

“This first LNG cargo is an important milestone for Novatek to enter the global LNG market,” said Lev Feodosyev, Deputy Chairman of Management Board – Commercial Director of Novatek.

“After the launch of the first train of the Yamal LNG project we will enter the LNG market with our own volumes, and gaining spot trading experience is important for us,” Feodosyev added.

Novatek is the operator of the US$27 billion Yamal LNG project in the Arctic which is expected to produce 16.5 mtpa of LNG at full buildout. The first cargo from Yamal LNG’s first train is scheduled to be shipped during the second quarter of 2017.

Novatek’s first spot LNG cargo comes just weeks after Russia’s Rosneft delivered its first ever shipment of the chilled fuel to Egypt.

Gas giant Gazprom is currently the only Russian company that exports LNG from Russia from the country’s sole liquefaction facility in Sakhalin.

At the end of 2013, Russia approved legislative amendments liberalizing its export regulations for LNG, allowing Rosneft and Novatek to export the chilled fuel.

As a result, Gazprom and its unit Gazprom Export lost the exclusive right to ship LNG abroad.

LNG World News Staff