https://sputnikglobe.com/20221028/spot-sales-of-lng-bring-russias-novatek-more-profit-than-all-long-term-contracts-1102794792.html
Spot Sales of LNG Bring Russia's Novatek More Profit Than All Long-Term Contracts
Spot Sales of LNG Bring Russia's Novatek More Profit Than All Long-Term Contracts
Sputnik International
BAKU (Sputnik) - Spot sales of the Yamal LNG project bring its parent company, Russian gas producer Novatek, more profit than all long-term contracts, thanks... 28.10.2022, Sputnik International
2022-10-28T10:39+0000
2022-10-28T10:39+0000
2022-10-28T10:39+0000
russia
gas
spot deals
lng
novatek
leonid mikhelson
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Yamal LNG is Novaket's largest project, launched with an initial capacity of 16.5 million tons. Mikhelson said that this entire volume had been contracted under long-term deals, with prices that are "normal and good" in today's market.Novatek's chief recalled how European leaders have long said that they would prefer spot market trade rather than long-term contracts, with a view to abandoning fossil fuels.Yamal LNG is a natural gas project based on the Yuzhno-Tambeyskoye field in Russia. Novatek owns a controlling stake in the project with 50.1%, France's Total and China's CNPC each own 20%, while the Silk Road Fund owns 9.9%.
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gas, spot deals, lng, novatek, leonid mikhelson
gas, spot deals, lng, novatek, leonid mikhelson
Spot Sales of LNG Bring Russia's Novatek More Profit Than All Long-Term Contracts
BAKU (Sputnik) - Spot sales of the Yamal LNG project bring its parent company, Russian gas producer Novatek, more profit than all long-term contracts, thanks to soaring energy prices, Novatek CEO Leonid Mikhelson said on Friday.
Yamal LNG is Novaket's largest project, launched with an initial capacity of 16.5 million tons. Mikhelson said that this entire volume had been contracted under long-term deals, with
prices that are "normal and good" in today's market.
"But this year, production will be about 21 million tons. The additional output goes to the spot market. It, of course, brings very high profits, given the abnormal prices on the market. The initial 16.6 million tons bring slightly less profit than these additional 4 million tons," Mikhelson said at the Verona Eurasian Economic Forum.
Novatek's chief recalled how European leaders have long said that they would prefer spot market trade rather than long-term contracts, with a view to
abandoning fossil fuels.Yamal LNG is a natural gas project based on the Yuzhno-Tambeyskoye field in Russia. Novatek owns a controlling stake in the project with 50.1%, France's Total and China's CNPC each own 20%, while the Silk Road Fund owns 9.9%.
