Moscow, 24 April 2019. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that its joint venture with Gazprombank Cryogas-Vysotsk has commenced full-scale production of liquefied natural gas (LNG). During the official ceremony at the port of Vysotsk, Russian President Vladimir Putin has formally started the Cryogas-Vysotsk LNG project.
“Cryogas-Vysotsk is our first medium-scale LNG project.” noted NOVATEK’s Chairman of Management Board Leonid Mikhelson, “Our marketing strategy provides for loading of bunkering vessels, small wholesale LNG sales, and LNG sales as motor fuel to the Baltics, Scandinavia and North-Western Europe markets. Natural gas used as transport fuel reduces carbon emissions and complies with new environmental standards such as the sulfur emissions reductions mandated by IMO 2020. We see potential to expand our commercial presence in this developing LNG market segment”.
Cyrogas-Vysotsk is a medium-tonnage LNG project located in the port of Vysotsk, Leningrad Region of Russia on the Baltic Sea. The project’s initial design capacity is 660 thousand tons of LNG per annum, and its infrastructure includes a 42 thousand cubic meters LNG storage tank and an offloading berth designed to handle LNG carriers with a capacity of up to 30 thousand cubic meters. NOVATEK acquired a 51% participation interest in Cryogas-Vysotsk project in July 2017.