UPDATE: Novatek may spend 2.52.8 tln rbl on LNG projects till 2030

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MOSCOW, Dec 12 (PRIME) -- Russian independent gas producer Novatek’s capital expenditure on upstream operations excluding geophysical surveys will stand at 700-780 billion rubles and on LNG projects at 2.5-2.8 trillion rubles until 2030, CFO Mark Gyetvay said on Tuesday.

The company intends to raise production to 820 billion cubic meters of gas, 107 million tonnes of gas condensate and 75 million tonnes of oil until 2030, he said.

Gyetvay also said that Novatek plans cash flow from operations to rise to 2.4-2.7 trillion rubles until 2030.

First Deputy CEO Alexander Fridman said that the company forecasts capital expenditures on construction of a liquefied natural gas (LNG) transshipment terminal on the Kamchatka Peninsula at 60 billion rubles.

“The main idea of the Kamchatka hub is to construct a road reloading. We are to finish a pre–feasibility study in December…From the point of view of costs, the project’s estimate stands at about 60 billion rubles,” he said.

Novatek CEO Leonid Mikhelson said that the company plans to keep a controlling stake in the project. “Of course, we will have a controlling stake. We are holding preliminary negotiations with partners,” he said.

In November, Novatek, Japan’s Marubeni Corporation and Mitsui O.S.K. Lines signed a memorandum to consider building the LNG transshipment and marketing terminal on the Kamchatka Peninsula.

Teruo Asada, chairman of Marubeni’s board of directors, told PRIME that the companies discussed creation of a floating LNG storage. Deputy CEO of Novatek Lev Feodosyev said in August that Novatek plans to build an LNG terminal with a capacity of 20 million tonnes a year on the peninsula.

(59.2348 rubles – U.S. $1)

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