Novatek logs higher production, sales slightly down

Russia’s independent LNG producer Novatek reported a rise in production while logging lower sales in the third quarter of this year.

Novatek said its natural gas production increased by 4.5 percent year-on-year to 19.13 billion cubic metres.

The Russian company’s total production of hydrocarbons in July-September rose by 3.6 percent to 150.4 million barrels of oil equivalent.

Onthe other side, natural gas sales volumes, including LNG, declined 0.8 percent in the quarter to 16.56 bcm.

Novatek said it sold 2.20 bcm of LNG on international markets, a drop of 27.6 percent when compared to the third quarter 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 volumes sold on the spot market, and a corresponding increase of Yamal direct sales under long-term contracts, it said.

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