Novatek proposes to change law on gas exports amid separation of gas fields from location of LNG production

BELOKAMENKA. June 6 (Interfax) - Russia's law on gas exports needs to be changed to stimulate production of liquefied natural gas (LNG), Novatek CEO Leonid Mikhelson told lawmakers.

"First of all, we need to change the law on gas exports. Now gas exports in Russia are permitted for companies that own fields to which the licenses specify that the extracted gas will be sent for LNG production. Now we will need to separate the actual production facilities from the fields," Mikhelson said during a visit by State Duma members to Novatek's Offshore Superfacility Construction Center in Murmansk Region on Monday.

"Novatek has the right to export for its projects, but our Cryogas-Vysotsk project on the Baltic Sea is not linked to any field and we are forced to ship [gas] for export through a commission contract with Gazprom Export," Mikhelson said.

He noted that Gazprom Export is now having problems processing payments for LNG shipments and so this is becoming Novatek's problem as well.