Novatek seeking to resell LNG from Cryogas-Vysotsk after Gasum ceases offtake - Mikhelson

ST. PETERSBURG. June 20 (Interfax) - Novatek is seeking to resell liquefied natural gas from Cryogas-Vysotsk which is no longer being drawn down by Finland's Gasum, but has not yet managed to place the entire volume, company head Leonid Mikhelson told reporters at the St. Petersburg International Economic Forum (SPIEF-2023).

"The contract with Gasum was concluded by Gazprom Export [under an agency agreement, because Cryogas-Vysotsk has no legal right to export LNG]. And Gazprom Export and Gasum have certain difficulties with mutual settlements, these difficulties have become problems for us," Mikhelson said.

"We can confirm that Gasum has not drawn down anything from us since late April. We are looking for other buyers, but this is a problem because Cryogas-Vysotsk does not have the right to export. This correlates precisely with updates to the law on exports," the Novatek chief said.

He said that the company is finding other buyers for gas unclaimed by Gasum, but so far not all of this volume has been placed. "Gasum used to by about 40% of our production, while we traded the remaining 60%. Now we are replacing that volume," Mikhelson said.