Russian Energy Giant Novatek Reports Almost 30% Drop in International Gas Sales in Q1
Russian gas giant Novatek reported on Thursday an almost 30 percent decrease year-on-year in its gas sales in the international market during the first quarter of 2020, as energy demand has fallen against the background of the COVID-19 pandemic
MOSCOW (Pakistan Point News / Sputnik - 09th April, 2020) Russian gas giant Novatek reported on Thursday an almost 30 percent decrease year-on-year in its gas sales in the international market during the first quarter of 2020, as energy demand has fallen against the background of the COVID-19 pandemic.
"Natural gas volumes sold in the Russian Federation in the first quarter 2020 were 18.24 bcm [644.15 billion cubic feet], whereas LNG volumes sold on international markets amounted to 2.45 bcm. The decrease in sales volumes on international markets was due to the decrease of Yamal LNG shareholders' share, including NOVATEK's share, of LNG sales on the spot market, and a corresponding increase of Yamal LNG direct sales under long-term contracts," the company said in a statement.
However, Novatek's hydrocarbon production increased by 2.1 percent year-on-year in the first quarter of this year and reached 150.2 million barrels of oil equivalent, according to the statement.
Hydrocarbon prices plummeted on the global markets in early March after parties to the OPEC+ deal on output cuts failed to agree on an extension past April 1. In addition, the uncertainty over the coronavirus pandemic and virus-linked restrictions, including massive air travel suspension, have wreaked havoc on the market.