Novatek says may cut 250 bln rbl investment plan for 2020 by 20%

MOSCOW, Apr 30 (PRIME) -- Russian gas producer Novatek plans to cut the 2020 investment program  by 20% from the initial plan of 250 billion rubles, Deputy CEO Mark Gyetvay said at a conference call on Thursday.

"More than 60% of our capital expenditure program earlier announced at 250 billion rubles will be spent in 2020. But taking into account the current macroeconomic situation, we will revise our forecast for the investment program, reducing it and we can cut it by 20%, or by 50 billion rubles from the planned volume," Gyetvay said.

Novatek expects a low gas price in Europe and Asia in June–August, but forecasts its later stabilization, Gyetvay said. "Basing on the results of tenders in China and India, we also expect that the JKM Index (reflecting spot prices in Asia) will be low this summer," Gyetvay said.

He said that the gas output plan for 2020 is unchanged at a 2–3% rise.

The official said that Novatek had postponed the deadline for the launch of the fourth line of the Yamal LNG liquefied natural gas (LNG) project to the end of 2020 from January–June.

The company is considering postponing an investment decision on the Obsk LNG but this will not affect the long-term plans of the company, the official said.

(73.6894 rubles – U.S. $1)

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