Page 10 - GLNG Week 47 2021

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Yamal LNG to start issuing

dividends this year

PERFORMANCE THE Novatek-led Yamal LNG terminal is “However, this would be the first returns
expected to pay its first ever dividend for the first earned by the company on the equity invest-
nine months of this year, representing an impor- ments made over the years by Novatek in the
tant milestone for shareholders in the $27bn $27bn project,” BCS GM said.
project. Moving forward, the project is expected to
Yamal LNG was brought online in Decem- use half of available cash flow for loan repay-
ber 2019 and reached its three-train liquefac- ments and half for dividends, Interfax reported.
tion capacity of nearly 17mn tonnes per year The anticipated start of dividends comes amid
(tpy) in late 2018. But its shareholders, which an unprecedented surge in global LNG prices,
also includes France’s TotalEnergies and China’s as demand has rebounded following the pan-
CNPC and Silk Road Fund, are yet to reap any demic while supply has remained constrained.
rewards from the accelerated development. But Yamal LNG’s gain from the market situation
A meeting of shareholders will take place was relatively modest, as the majority of its sales
on December 10 to discuss whether dividends take place under oil-indexed contracts. What
should be issued, Interfax reported last week. increase there was came as a result of recovering
Analysts at BCS Global Markets (BCS GM) oil rather than gas prices.
noted that the RUB16bn ($210mn) that Novatek Novatek is currently seeking external financ-
would earn in dividends for the first nine months ing for its next liquefaction project, Arctic LNG-
of the year would not be the first time it has 2. That project is expected to benefit from higher
received money from the project. Yamal LNG margins than Yamal LNG, as it is larger in scale
paid out some RUB113.5bn to the company in and will make use of existing infrastructure
principal and interest on loans. developed for the latter project.™

Novatek launches another

West Siberian field

PROJECTS & RUSSIA’S Novatek has brought on stream He added that in addition to Novatek’s focus on
COMPANIES another field at the North-Russkiy cluster, one ramping up LNG exports, maintaining gas flow
of its flagship projects in Western Siberia, the to the domestic market was another of its strate-
company announced on November 17. gic priorities.
The Kharbeyskoye field will produce 3.6bn “We are continuing to develop the
cubic metres of gas and 0.6mn tonnes per year North-Russkiy cluster, which plays an important
(tpy) of condensate at full capacity, Novatek role in our strategy,” he said.
said. Its launch comes after Novatek commis- Commenting, analysts at BCS Global Mar-
sioned the first North-Russkiy field, North-Russ- kets (BCS GM) said the start-up was “a nice
koye, in December 2019, followed by a second, addition to maintain the production base
East-Tazovskoye, in Augusut 2020. A fourth that would likely help offset declines at more
and final field in the cluster awaiting launch is mature fields rather than led to production
Dorogovskoye. growth.”
Together, it is expected that the fields will “Novatek has an impressive resource base,
produce 13 bcm per year at peak capacity, all both within its core, historic production region
of which will be supplied to domestic indus- of West Siberia as well as on the Gydan and
trial clusters. The cluster is far removed from Yamal peninsulas,” BCS GM said. “We expect
Novatek’s LNG projects further north. such announcements to be made roughly annu-
“The Kharbeyskoye field launch will make a ally going forward as the company looks to
significant contribution to Novatek’s natural gas maintain core output and while growing LNG
and liquid hydrocarbon production volumes,” production from its massive resources on the
company CEO Leonid Mikhelson commented. Yamal and Gydan peninsulas.”™

P10 www. NEWSBASE .com Week 47 26•November•2021