Russia’s Novatek says production, sales up in Q2

Russia’s independent LNG producer Novatek said Monday its gas production and sales rose in the second quarter of this year.

Novatek said in its preliminary report natural gas production increased by 7.8 percent year-on-year to 19.95 billion cubic meters.

Also, the company’s total production of hydrocarbons rose by 7.8 percent to 156.6 million barrels of oil equivalent.

Natural gas sales volumes increased during the quarter to 17.70 bcm. This marked a rise of 4.7 percent when compared to the same period last year.

However, LNG sales declined. Novatek said it sold 2.39 bcm of LNG on international markets during the quarter, a drop of 3.2 percent.

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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