Russian Novatek Output Falls in Q1 2017

Russia's largest independent gas producer Novatek produced 15.72bn m³ of equity gas in Q1 2017, down 8.8% on the year. Its crude and condensates output also fell, by 7.5%, to 2.967mn metric tons of oil equivalent, resulting in an overall drop of 8.5% to 127.7mn barrels of oil equivalent, it said April 10. Its statement provided no explanation for the decreases.

Preliminary natural gas sales volumes however totalled 18.8bn m³, which was 5.5% more year on year.

Novatek processed 2.91mn metric tons of unstable gas condensate at the Purovsky processing plant, representing a 9% decrease in daily average processing volumes as compared with the corresponding volumes processed in the prior reporting period, it said.

Novatek processed 1.767mn mt of stable gas condensate at the Ust-Luga Complex, representing a 0.4% increase in daily average volumes.

As at March 31, Novatek had 0.1bn m³ of natural gas and 542,000 mt of stable gas condensate and petroleum products in storage or transit and recognized as inventory.

Novatek is preparing to launch the first train of its Yamal LNG plant late this year (pictured above). The company's operations are in the far north, on the Yamal Peninsula in west Siberia. The three-train Yamal LNG complex once fully completed will have 16.5mn mt/yr liquefaction capacity. Novatek remains in talks with prospective investors about a potential second 16.5mn mt/yr complex in the same region, dubbed the Arctic LNG project.

William Powell