Novatek gas sales plunge on reduced Yamal spot sales

A ramp-up in long-term contract requirements leaves operator with reduced volumes to sell

Russian producer Novatek saw its gas sales to international markets plunge by 32pc in the second quarter of 2020 compared with the same period last year, while half-year figures were down by 30pc. This was despite gas production being broadly similar in 2020 to 2019. The firm produced 18.5bn m³ (203mn m³/d) of gas in the second quarter compared with 18.9bn m³ in Q2 2109. For the half-year, 2020 actually saw a slight increase in production, with output edging closer to 37.6bn m³. But international gas sales plunged from 3.65bn m³ to 2.5bn m³ for the quarter and from 7.1bn m³ to 4.9bn m³ for the half-year. Russian domestic sales were also down, but much less significantly—from 15.1bn m³ and 33