CEO: Novatek expects gas production to remain at 82 bcm in 2023

VLADIVOSTOK, Sep 12 (PRIME) -- Russian independent gas company Novatek's gas production will remain almost flat on the year at about 82 billion cubic meters by the end of 2023, CEO Leonid Mikhelson told reporters on Tuesday on the sidelines of the Eastern Economic Forum.

“In terms of gas production in 2023 – it will be somewhere around 82 billion cubic meters with a little, as last year, but it will be a little more,” he said.

Mikhelson also said that the production of liquid hydrocarbons will grow by 2–2.5% on the year.

Novatek's revenue and net profit in 2023 will grow by about 25% compared to 2021, he said.

“It is correct to compare financial results not with 2022, but with 2021: 2022 is exceptional. Because of the decisions made in Europe we were close to collapse. And compared to 2021, this is a growth of 25% of the overall financial performance,” he said.

The net profit of Novatek attributable to shareholders was at 432.927 billion rubles in 2021, while total revenue amounted to 1.157 trillion rubles.

Novatek resumed supplies of contracted volumes of liquefied natural gas (LNG) to Finnish Gasum after a short break, Mikhelson said.

Most of Novatek's supplies to China are paid for with yuan, and there are no difficulties with mutual settlements in national currencies, he also said.

According to Mikhelson, Novatek hopes for a breakthrough in negotiations with India in 2024, as along with Vietnam it is a priority market for the company.

The company expects to make an investment decision on the Murmansk LNG plant in 2024 and the Obsky LNG project in the first half of 2024, he said.

Novatek also solved all the issues with the Yamal LNG plant maintenance and ensured its stable operation for several years, he also said.

Total capital investments in the Arctic LNG-2 plant will increase due to reconfiguration of energy supply, but will be 20–25% lower than in the Yamal LNG project, their increase will be covered by shareholders, he said.

The design capacity of the Cryogas-Vysotsk LNG plant, a joint project of Novatek and Gazprombank, will increase by 10–15% to 900,000 tonnes by the end of March 2024, Mikhelson said.

Many Russian companies may be interested in Novatek's LNG technologies and equipment, as they will be cheaper than foreign analogs, he also said.

(96.5083 rubles – U.S. $1)

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