Novatek intends to increase condensate production in 2023

Novatek, one of the key players in the Russian energy industry, plans to increase production of liquid hydrocarbons in 2023, mainly due to growth in gas condensate production. According to Leonid Mikhelson, the company’s chairman of the board, despite the expected “significant drop” in oil production, the overall growth in liquid hydrocarbon production will be about 2-2.5%.

Novatek’s gas production in 2023 is expected to be at a level comparable to last year, approximately 82 billion cubic meters or slightly more. This stability in gas production is in line with Russia’s commitments under the OPEC+ agreement, where the country has made a voluntary commitment to limit its oil production to 9.449 million bpd between March 2023 and December 2024, 500,000 bpd less than production in February 2023.

In 2022, Novatek showed a 2% increase in hydrocarbon production, reaching 638.7 million barrels of oil equivalent. Gas production increased by 2.8% to 82.14 billion cubic meters, while production of liquid hydrocarbons, including gas condensate and oil, decreased by 2.9% to 11.94 million tons.

Most of the gas produced by Novatek is used to produce liquefied natural gas (LNG), in particular at the Yamal LNG plant in the Yamal-Nenets Autonomous District and Cryogas-Vysotsk in the Leningrad Region. The Yamal LNG plant, owned by Novatek, operated at 120% utilization in 2022, producing almost 21 million tons of LNG, equivalent to 284 tanker shipments. This exceeds the plant’s nominal capacity of 17.4 million tons per year.

This strategy of Novatek is aimed not only at increasing its gas market share and strengthening its position in LNG, but also at complying with global energy trends and international commitments in the context of ecology and sustainable development. Maintaining gas production levels, along with increasing gas condensate production, allows Novatek to flexibly adapt to changing market conditions and maintain its competitiveness.

Taking into account current and future projects, Novatek continues its development as one of the leading players not only in the domestic but also in the international energy market. The Company is actively investing in the development of new technologies and projects aimed at improving environmental efficiency and reducing the carbon footprint of its operations. These steps not only contribute to Novatek’s sustainable development, but also strengthen its reputation as a responsible participant in the global energy industry.

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