Novatek Natural Gas Sales, Production Fall in Q2

SEATTLE (Oil Monster): Russia’s liquefied natural gas (LNG) giant Novatek has announced declining sales and production volumes for natural gas in its Q2 2020 preliminary results on Monday, Kallanish Energy reports.

Novatek reported total natural gas production at 18.5 billion cubic meters (Bcm), including shares in production of joint ventures, a 3% decrease from Q1 this year and a 0.9% fall from Q2 2019.

Total natural gas sales volumes during the second quarter fell to 16.9 Bcm from 20.69 Bcm in Q1 this year, an 18% decrease quarter-on-quarter.

Novatek’s domestic natural gas sales volumes dropped 20.8% between Q1 and Q2 this year, from 18.24 Bcm in the first quarter to 14.43 in the second.

While the company’s international gas sales volumes stayed flat quarter-on-quarter (2.47 Bcm in Q2 2020), it recorded a 32.3% decline on a year-on-year basis (3.65 Bcm in Q2 2019).

Novatek stated that the decline in international sales was 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 of Yamal LNG direct sales under long-term contracts.”

The company also noted that as of 30 June 2020, it had 1.0 bcm of natural gas, including LNG, and 450,000 tons of stable gas condensate and petroleum products in storage or transit. This represents a substantial increase compared to the Q1 2020, when it recorded 0.3 bcm of natural gas, including LNG, and 620,000 tons of stable gas condensate and petroleum.

Courtesy: www.kallanishenergy.com