Liquids Sales

NOVATEK sells liquid hydrocarbons (stable gas condensate, petroleum products, light hydrocarbons, LPG and crude oil) domestically and internationally. We strive to respond quickly to changing market conditions by optimizing the customer base and supply geography, as well as developing and maintaining our own logistics infrastructure. 

 

Total sales volumes of liquid hydrocarbons in 2015 aggregated 12,888 thousand tons, representing a 82%increase over 2014 volumes. The record high growth rate is due to higher gas condensate production volumes and higher processing volumes at the Purovsky Plant and the Ust-Luga Complex, as well as to increase in crude oil production. Our export sales of liquids grew by 70%year-on-year to 9,004thousand tons.

Our liquids sales revenues increased to RR 249.8 billion, or by 2 timesas compared to 2014, mainly driven by much higher sales volumes as well as the growth in average prices in rouble terms due to higher US dollar to Russian rouble exchange rate and lower export duty rates. Liquid revenues exceeded revenues derived from natural gas for the first time in our corporate history.

Petroleum products from the Ust-Luga Complex accounted for 52% share of our overall liquids sales volumes. Petroleum product sales volumes grew by 1.5 times to 6,693 thousand tons. This increase in high value-added product sales volumes had a very positive impact on the financial results of the Company. We sold 4,120 thousand tons of naphtha, 935 thousand tons of jet fuel and 1,638 thousand tons of fuel oil and gasoil. The main share of stable gas condensate processing products (99%) was sold for exports. Sales to the European markets accounted for 56% of total petroleum product sales volumes, 35% were sold to the Asian-Pacific region, 8% to North America and 1% to the Middle East. Naphtha was mainly exported to the Asian-Pacific countries, while jet fuel, fuel oil and gasoil was shipped to North-Western Europe.

Export sales of stable gas condensate were resumed in March 2015 after reaching full capacity utilization at the Ust-Luga Complex. During the reporting year 1,477 thousand tonsof stable gas condensate were delivered for exports by sea and railway as compared to no volumes exported in 2014. Total stable gas condensate sales volumes grew nine-fold year-on-year to 2,786thousand tons.

A portion of light hydrocarbons produced at the Purovsky Plant is processed on tolling terms at SIBUR’s Tobolsk Petrochemical Complex to commercial LPG, which is then delivered to NOVATEK’s customer base, while the rest of the light hydrocarbons volumes are sold to SIBUR.  We sold 1,026 thousand tons of light hydrocarbons in 2015.

LPG sales volumes totaled 1,280 thousand tons in 2015, representing a 37.6% increase compared to 2014. LPG export sales volumes amounted to 551thousand tons or 43% of the total LPG sales volumes. Novatek Polska, our wholly owned LPG trading company in Poland, sold 415thousand tons of LPG, representing 75% of our total LPG export sales. Other export markets for LPG were Finland, Lithuania, Hungary, Slovakia and Turkey. On the domestic market, our LPG is sold through large wholesale channels, as well as through our network of retail and small wholesale stations. 

Sales of crude oil in 2015 totaled 1,090 thousand tons, representing a 21% increase over 2014 volumes. We sold 65% of our crude oil volumes on the domestic market with the remaining volumes supplied to export markets.

Liquids Sales Volumes
FY 2014
FY 2015
Petroleum products, mt

4,438

6,693
Liquefied petroleum gas, mt
930
1,280
Crude oil, mt
903
1,090
Light hydrocarbons5041,026
Stable gas condensate3032,786
Other1113
Total7,08913,888

 

Geography of Liquids Sales