Page 4 - FSUOGM Week 44

FSUOGM COMMENTARY FSUOGM

Novatek remains bullish on

long-term LNG outlook

Novatek believes current low gas prices are unsustainable, and sees
LNG demand doubling by 2040 on the back of Asia-Pacific growth

RUSSIA RUSSIA’S biggest independent gas producer development,” and he ruled out any structural
Novatek remains bullish on long-term prospects changes to LNG demand as a result of the
WHAT: for gas, despite prices falling to unprecedented pandemic.
Novatek remains lows this year in the wake of the coronavirus In the shorter term, the CFO said that while
"absolutely committed" (COVID-19) pandemic. gas prices were still lower than the pre-corona-
to producing 70mn tpy of Speaking to investors on October 29, Novatek virus level, the recovery is underway. A rise in
LNG by 2030. CFO Mark Gyetvay said the LNG exporter forward curve prices for the upcoming winter
‘remains absolutely committed to its portfolio reflects expectations of colder weather ahead,
WHY: strategy to deliver up to 70mn tonnes of LNG” Gyetvay said.
Despite weaker growth per year by 2030. “We have always remained optimistic dur-
this year, the company “Energy transition combined with grow- ing this extraordinary year,” he said. “We have
is still bullish on the ing economic activities in Asia and Pacific will stated many times that low gas prices were not
long-term outlook for LNG remain significant contributing factors to future sustainable.”
demand. LNG demand growth, as well as supporting nat- Low prices are more reflective of unseasona-
ural gas as the primary clean-burning fossil fuel bly warm winter weather over the past two win-
WHAT NEXT: within the future total energy mix,” he said in a ter seasons as well as high levels of storage, while
Novatek's next major conference call. COVID-19 lockdowns and the resulting eco-
export plant Arctic LNG-2 Novatek anticipates global LNG consump- nomic fallout have played a lesser role, he said.
is still on track for launch tion reaching 365mn tonnes in 2020, up 2% “Moreover, we saw significant new LNG vol-
in 2023, but some of its year on year, and sees it doubling to over 700mn umes come to market over the past several years
smaller projects have tonnes by 2040. Considering the circumstances, from the completion of global projects,” he con-
slipped behind schedule. Gyetvay said the growth this year was a “positive tinued. “It takes time for the market to absorb

P4 www. NEWSBASE .com Week 44 04•November•2020