Russia's Novatek Awards Order for 15 LNG Tankers: Press
Novatek, the leading Russian gas independent, has submitted the necessary documentation before placing an order for 15 Arctic-class LNG tankers with the Zvezda shipbuilding yard in Russian Far East, Tass reported October 23, following a press briefing by CEO Leonid Mikhelson.
Tass said that Russian President Vladimir Putin had asked Russian oil companies to increase their orders at Zvezda as it had the capacity to handle bigger tankers. It has just received an order from Rosneft for ten ice-class (Arc 7) oil tankers, capable of working in ice that is 1.8 meters thick.
The tankers will carry the LNG from the planned Arctic 2 LNG project at the Gydan Peninsula – for which the final investment decision is not yet taken – to a transshipment terminal yet to be built at Kamchatka, whence LNG will be collected by cheaper, conventional tankers for onward delivery to markets.
A similar plan already exists in the west: Novatek has booked capacity at the Zeebrugge LNG terminal, operated by Fluxys.
Novatek reported its Q3 results October 25. Its total revenues amounted to rubles 130.7bn and normalised earnings before interest, tax, depreciation and amortisation – and such from joint ventures – of rubles 59.3bn ($1.03bn), representing increases of 3.3% and 2.7%, respectively, as compared to the corresponding period in 2016. The rises "were largely due to an increase in liquids and natural gas sales prices," it said.
In 2016, Novatek's profit was "significantly impacted by the closing in the first quarter 2016 of a transaction for the sale of a 9.9% equity stake in Yamal LNG, as well as by the foreign exchange differences including at the joint ventures level. Excluding these effects, normalised profit attributable to shareholders was rubles 34.9bn ($606mn) in the third quarter 2017 and roubles 113bn ($1.96bn) in the nine months 2017, representing an increase of 11.7% and 15.6%, respectively, as compared to the corresponding periods of 2016.
Marketable output, purchases
|
3Q 2017 |
3Q 2016 |
|
9M 2017 |
9M 2016 |
|
122.4 |
131.5 |
Total hydrocarbon production (mn boe), |
374.7 |
405.0 |
|
1.33 |
1.43 |
Total production (mn boe/day) |
1.37 |
1.48 |
|
14,998 |
16,195 |
Gas output including share in JVs (mn m³) |
46,032 |
49,952 |
|
10,153 |
11,304 |
Natural gas production by subsidiaries |
31,674 |
35,082 |
|
2,165 |
1,812 |
Natural gas purchases from joint ventures |
9,822 |
6,401 |
|
2,407 |
2,174 |
Other purchases of natural gas |
6,203 |
6,124 |
|
14,725 |
15,290 |
Total gas output & purchases (mn m³) |
47,699 |
47,607 |
|
2,921 |
3,060 |
Liquids production (inc. share in JVs ('000 metric tons) |
8,806 |
9,387 |
|
1,683 |
1,784 |
Liquids production by subsidiaries |
5,083 |
5,448 |
|
2,312 |
2,382 |
Liquids purchases from joint ventures |
6,951 |
7,363 |
|
53 |
42 |
Other purchases of liquids |
131 |
86 |
|
4,048 |
4,208 |
Total liquids production and purchases (mt) |
12,165 |
12,897 |
(Source: Novatek)
In the third quarter 2017, gas sales volumes totalled 13.9bn m³, down 3.9% on Q3 2016 and in line with the planned contracted delivery schedule. Overall, in the nine months 2017, its natural gas sales volumes totalled 47bn m³, up 1.6% as end-users wanted more gas in the colder weather.
William Powell