Page 11 - FSUOGM Week 39 2019

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of LNG by the end of 2019.
He added that the plant will launch an
additional line in 1Q20, which will increase output by an extra 1mn tons, but did not disclose the mechanism to bind contract prices.
“Given that surplus output accounts for less than 10% of Yamal’s total, the deviation of medium- term spot-based from long-term oil-linked contract prices will have a negligible impact on the project’s valuation,” BCS Global Markets commented on September 27, seeing the news as neutralforNovatek.
The company, under the control of Russian businessmen Leonid Mikhelson and Gennady Timchenko, saw net profits climb almost six-fold year on year to RUB451bn ($7bn) in the first half, as rising LNG production more than offset weaker global gas prices. Its 50.1%-owned Yamal LNG project in the Russian Arctic reached its full 16.5mn tonnes per year (tpy) capacity last December, just two years after its launch.
As reported by bne IntelliNews, Novatek could increase its dividend payout ratio as of 2020. Currently Novatek pays 30% of adjusted net profit under IFRS in dividends. Once the financing plans for its second $21.3bn Arctic-2 LNG plant will be drawn, Novatek could increase the payout, according to Aton Equity citing a meeting with company’s representatives.
bne IntelliNews, September 30 2019
Novatek pens deal with
local firm to help substitute
equipment imports
Russia’s Novatek has signed a memorandum on strategic partnership with a domestic pump manufacturer called HMS Group in
order to produce “critical equipment for LNG production” in Russia.
Under the agreement, the pair will continue long-term co-operation in making and supplying compressors, pumps and other equipment for Novatek’s LNG projects.
“The HMS Group has already fabricated
and shipped compressor equipment for the Yamal LNG project’s Train 4, which is unique for the Russian industry. We see great prospects in further developing our mutual cooperation withtheHMSGroupondomestically manufactured equipment for our LNG projects,” Novatek CEO Leonid Mikhelson commented. “One of the company’s main priorities is
using the technological and infrastructure capabilities of Russian domestic enterprises
to reduce construction costs and enhance
the competitiveness of Novatek’s future LNG projects.”
September 30 2019
Novatek ships 15 LNG
cargoes to Asia-Pacific in
Q3
Russia’s leading LNG producer Novatek shipped 15 cargoes of super-chilled gas from its Yamal LNG project in the third quarter to the Asia- Pacific region using the Northern Sea Route (NSR), it said on October 1. This amounts to a quarter of all deliveries during the period, the company said, noting it expected four times
as much LNG to go to Asia via NSR this year compared with 2018.
“The increase of LNG delivered eastbound via the NSR confirms the commercial priority of the Asia-Pacific region as a strategic direction
for future deliveries of Novatek’s LNG,” Lev Feodosev, the company’s deputy CEO, said. “Developing further the navigational efficiency via the NSR combined with the construction of LNG transhipment complexes in Kamchatka and Murmansk will optimise the company’s logistics chain.”
October 1 2019
EASTERN EUROPE
Russian oil transit via
Belarus down 6mn tonnes
in 2019
The Belarusian authorities forecast a decline of the transit of Russian oil to Europe by around 6mn tonnes by the end of 2019 due to this year’s low-quality Russian oil crisis, according to deputy director general, chief engineer of the Gomeltransneft Druzhba pipeline operator Andrei Verigo.
“Monthly oil transportation volumes [via Belarus] have been fully restored. We will be unable to restore the annual volumes. A total of up to 54mn tonnes will be pumped by the end of the year, down from 59mn tonnes last year,” state news agency BELTA quoted Verigo as saying on September 26.
“The difference will be at least 6mn tonnes due to logistics on the market. The market is
full of oil. The lacking oil has been replaced by oil delivered by sea and other sources. Our job today is to compensate for the reduced earnings,” he added.
By raising oil transportation tariffs by 3.7%
as from September 1, Belarus will be able
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