Novatek Dips Toe into Spot LNG Market

Swiss-registered Novatek Gas & Power, a wholly-owned trading subsidiary of Russian gas producer and marketer Novatek, has supplied its first spot LNG cargo. It was sourced from the Trinidad & Tobago Atlantic LNG plant and delivered to the Chilean port Quintero, it said July 7.

Novatek's commercial director Lev Feodosev said: “This first LNG cargo is an important milestone for Novatek to enter the global LNG market. After the launch of the first train of the Yamal LNG project, we will enter the LNG market with our own volumes, and gaining spot trading experience is important for us.”

Yamal LNG under construction (Credit: Novatek)

Novatek's 16.5mn mt/year Yamal project is now fully financed with a mix of mostly Russian and Chinese funds adding up to $19bn, US and European Union sanctions on Russia having cut off access to long-term finance from western banks. Its biggest partner is French major Total, a major LNG trader. First LNG is due in 2017 and most of the plant's output has already been sold.

William Powell   | naturalgaseurope.com