Marketing

During 2011, NOVATEK supplied natural gas to 33 regions of the Russian Federation and acquired the largest gas distributor in the Chelyabinsk region. The Company also expanded its use of the Northern Sea Route to significantly reduce delivery time for shipments of stable gas condensate to countries of the Asian-Pacific region.

 

NOVATEK’s 2011 natural gas sales volumes amounted to 53.7 bcm, an increase of 44.6% compared to 2010 sales volumes of 37.1 bcm, of which 29.3 bcm (54.7%) was sold to the end-customer segment and 24.3 bcm (45.3%) was sold ex-field to the wholesale trader segment.

 

Total revenues from natural gas sales increased to RR 110.9 billion or by 56.1%, in 2011 as compared to 2010, due to the higher volumes and an increase in prices.

The Company’s liquid hydrocarbon sales results demonstrate our success in diversifying both the product slate, to higher value added products, and geographic markets. The initial launch and subsequent expansion of the Purovsky Plant has enabled NOVATEK to optimize its marketing strategy based on the reliable supply of high quality processed hydrocarbons to both the domestic and export markets.

 

Total sales volumes of liquid hydrocarbons in 2011 amounted to 4,111 mt, a 20.9% increase over 2010 volumes, while total revenues from liquids sales increased to RR 64.7 billion, or by 46.6%, in 2011 as compared to 2010, due to the increase in sales volumes and higher benchmark pricing on international markets.

Stable gas condensate is transported by rail from the Purovsky Plant to the loading and storage facilities we have constructed, together with OAO Belomorskaya Neftebaza, at the all season Port of Vitino. In 2011, we loaded 2.9 mmt at the port or 19.4% more than in 2010.