Oil & Gas

30 Sep 2020

Russia's Novatek Says on Track for up to 70 mln T/yr of LNG By 2030

30 Sep 2020  by Reuters   

Novatek is on track to produce 57-70 million tonnes of liquefied natural gas (LNG) per year by 2030 despite the pandemic, the Russian company said on Tuesday, around three times more than current output.

Russia wants to expand its role as a global market player, along with Qatar, Australia and the United States. It is seeking to raise its market share to 15 per cent by 2025 from less than 10 per cent now.

Alexander Nazarov, in charge of investor relations at Novatek, also told an online conference that the company expects its output of crude oil and gas condensate to be stable this year. Novatek produces more than 20 million tonnes of LNG per year at its Yamal LNG project.

Nazarov reiterated that Novatek expects to launch Arctic LNG 2 in 2023 and for it to reach its full capacity of almost 20 million tonnes in 2026. It also has Arctic LNG 1 and Obsky projects in the pipeline.

Novatek pays at least 30 percent of adjusted net income in dividends. Nazarov said the company expects to reconsider its dividend policy and expressed hope that this will lead to increase in dividend.

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