Novatek CEO sees Yamal LNG output rising to 21 mln tns in 2022

MOSCOW, Oct 13 (PRIME) -- The output of liquefied natural gas (LNG) of Russian independent gas company Novatek’s Yamal LNG facility is expected to increase to 21 million tonnes in 2022, CEO and core owner Leonid Mikhelson told reporters at the Russian Energy Week forum on Thursday.

“Around 21 million (tonnes),” he said.

In 2021, the plant’s output amounted to 19.6 million tonnes.

Mikhelson said that the construction of the Arctic LNG-2 plant continues, and is planned to be finished in line with the schedule, and that all sanctions-linked problems of the construction have been settled.

Novatek plans that the next LNG project to implement will be the Obsky LNG, the CEO said.

“We are elaborating (on the Obsky LNG project). I think that very important technological decisions on the equipment will be made until the end of 2022, which will help us make a final investment decision in January–June 2021,” he said.

Mikhelson also said that the Arctic LNG-1 project can be the next.

“This and last year we have sent around 40–41 billion rubles to investment and geological survey operations. We are mainly focused on the Gydan deposit, the Achim deposits. We have had the southern part of the reserves in the area of Geofizicheskoye, and are preforming exploration at the eastern part, which is going to become Arctic LNG-1’s resource base,” he said.

Novatek has not yet started an audit necessary for a decision on participation in the Sakhalin-2 project, Mikhelson said.

Novatek has found new markets to replace its oil shipments to Europe so sees no risks for the company in introduction of the E.U.’s oil embargo in December, he also said.

“We are a minor oil producer, a minor one in terms of volumes of some products, so we have solved all the market problems over the past months. And as to everything that used to be shipped to Europe, we have eliminated the risks for ourselves,” he said.

Mikhelson said that the government discussed the bill on raising the income tax for LNG producers with Novatek, and there are no violations of any intergovernmental agreements.

(63.7559 rubles – U.S. $1)

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