Novatek to sell 5% of LNG on the spot market

The last 5% of the volume from the Yamal will go to the spot market.

As "the Kommersant" informs, Novatek has reserved 5% of the "Yamal LNG" gas project for sale on the open market apart from the long-term contracts. Thus, the company has almost entirely distributed the products, leaving no volumes for a potential buyer of 9% in the project. The increase in the proportion of spot sales of LNG corresponds to the global trends, but in this case Novatek could be guided not by the intention to earn extra income, but the intention to avoid the possible penalties under long-term contracts, if the timing of the project has to be postponed because of the impact of sanctions.

Novatek decided to sell 5% of the volume of the liquefied natural gas production on the future plant of the company on the Yamal Peninsula in the free market (outside of the long-term contracts), a source familiar with the situation told "the Kommersant". According to him, in absolute terms, it is about 820 thousand tons of LNG per year, the sale of which will manage the Singapore Yamal Trade - a wholly-owned "subsidiary" of LLC "Yamal LNG", the project company of the plant. NOVATEK did not comment on this information.

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