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reports, citing a company press release. Both men have been at the company for years. In addition, Vsevolod Cherepanov is leaving his post as Head of Department 307 (responsible for the production of gas, gas condensate and oil), but is to continue working in a different position in Gazprom.
● Novatek
Novatek plans to launch the first train of its third LNG (LNG-3) project at the end of 2024, increasing its total LNG shipment flow to 46.5mmt/a, Kommersant reported on January 29. According to the paper, the third LNG project might include up to three trains with capacity of 1.5-1.6mmt of LNG each, constructed based on Novatek’s Arctic cascade liquefaction technology. The resource base for the project might be either the Verkhnetiuteyskoye and West-Seyakhinskoye fields at Yamal or the Shtormovoye and Utrenneye fields at Gydan, the paper reports. “The company’s plans to increase LNG shipments to 46.5mmt/a by the end of 2024 are part of Novatek’s long-term strategy, which implies increasing production to 57mmt/a of LNG by 2030. We also note that the project is currently at an early stage, with the final investment decision (FID) expected in 2020-21. Therefore, for now we deem the news as neutral for the name,” VTB Capital (VTBC) said in a note.
Russia’s leading independent gas producer Novatek sent a proposed deal on Total’s purchase of 10% in Novatek’s Arctic LNG-2 project for approval to the Government Commission on Foreign Investments that is under the Federal Antimonopoly Services (FAS), Kommersant reported on February 25. Artic LNG2 is the second of a three stage plan to develop gas deposits in Russia’s frozen north that the company is planning and could make Russia a major player on the international LNG market. Previously Novatek said the deal should to be closed in 1Q19, in line with the initial plans and in full compliance with federal law, according to the paper. “Novatek and Total signed a binding agreement on the sale of a 10% stake in the Arctic LNG project in May,” Dmitry Loukashov of VTB Capital (VTBC) said in a note. “Given that the government has previously supported the deal and that the company has confirmed its initial plans to close it by the end of 1Q19, we expect it to be finalised in the near term. We think, though, that the news might be negative for sentiment on the name.”
9.2.2 Automotive corporate news
9.2.3 Aviation corporate news
The Russian-French-Japanese joint venture Avtovaz will delist from the Moscow Stock Exchange.
Aeroflot reported mixed January traffic data on February 20. Aeroflot increased the total volume of passengers carried by 14.5% to 4.2mn in January, with the airline showing 13.4% growth. Passenger volumes for international and domestic flights were up 15% and 14.2%, respectively. RPK was solid at +14.3% for the group, 13.6% for international and 15.4% for domestic flights. The passenger load factor continued to slide to 75.9% by 1.2pp and 1.4pp v December 2018 and January 2019, respectively, reports BCS Global Markets. “Solid passenger volumes and RPK data, however passenger load factor continued to slide to 75.9%, which means a mixed result for the airline,” Anastasia Egazaryan of BCS said in a note. “Traffic numbers,
114 RUSSIA Country Report March 2019 www.intellinews.com