LNG

Novatek, the operator of the Yamal LNG export plant and developer of the Arctic LNG II project in northern Siberia, reported preliminary second-quarter operating results, including a 7.8 percent increase in natural gas output to 19.95 billion cubic metres.

Novatek’s overall hydrocarbon production rose 6.5 percent compared with the same three months of 2020 to total 156.6 million barrels of oil equivalent (boe), including 3.1 million tons of liquids comprising gas condensate and crude oil.

The company’s LNG volumes sold on international markets amounted to 2.39 Bcm, representing a decline of 3.2 percent compared with the 2020 quarter.

Natural gas volumes sold in the Russian Federation came to 15.31 Bcm, an increase of 6.1 percent.

“Total natural gas sales volumes, including volumes of LNG sold, aggregated to 17.70 Bcm, representing an increase of 4.7 percent,” added Novatek.

“The decrease attributable to volumes sold on international markets was mainly due to the decrease of Yamal LNG shareholders’ share, including Novatek’s share, of LNG volumes sold on the spot market, and a corresponding increase in Yamal LNG direct sales under long-term contracts,” the company explained.

Holdings

Yamal is a joint venture liquefaction and export plant with Novatek holding 50.1 percent, TotalEnergies 20 percent, China National Petroleum Corp. 20 percent and China’s Silk Road Fund 9.9 percent.

The project is located on the Yamal Peninsula, above the Arctic Circle, and utilizes the resources of the South Tambey natural gas field.

Yamal has nameplate output of 17.5 million tonnes per annum from three Trains and with a fourth smaller Train producing 900,000 tonnes a year.

At the end of June 2021 Novatek said it had 0.8 Bcm of natural gas, including LNG, and 628,000 tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory.

In the second quarter and first half 2021, Novatek said it processed 3.1 million tons and 6.2MT respectively of unstable gas condensate at the Purovsky Processing Plant, representing an increase in processed volumes of 11.2 percent and 11.0 percent versus the 2020 periods.

Novatek’s quarterly and first-half processed volumes came to 1.8MT and 3.6MT respectively of stable gas condensate at the Ust-Luga complex on the Baltic Coast. This was 0.3 percent and 0.5 percent lower than in the prior-year period.

Quarterly petroleum product sales volumes aggregated at 1,912,000 tons, including 1,287,000 tons of naphtha, 280,000 tons of jet fuel and 345,000 tons of fuel oil and gasoil.

Novatek also sold 1,018,000 tons of crude oil and 391,000 tons of stable gas condensate.

China's liquefied natural gas imports increased by 13 percent in September, though were still well short of the monthly shipments received by the world’s No. 1 importer Japan.

China likely imported a record 61 million tonnes of LNG during 2019, a 13.5 percent increase on the previous year and consolidating its position as the No. 2 importer after Japan and ahead of South Korea.