Press Releases and Events

NOVATEK BEGINS INSTALLATION OF EQUIPMENT AT THE PUROVSKIY CONDENSATE STABILIZATION AND LIQUID EXTRACTION PLANT

14 July, 2004 OAO Novatek has begun installing equipment at its Purovskiy Condensate Stabilization and Liquid Extraction Plant, which is being constructed due to the Company’s growing volume of gas condensate production, inadequate access to condensate pipelines and Gazprom’s processing plants and a reduction to the quota of independent producers by these plants due to increases in Gazprom’s own production and condensate processing.

The Purovskiy’s Plant’s tanks and column stabilizers will be supplied by OAO Kurgankhimmash; heaters — by OAO Penzakhimmash and air cooling units — by OAO Borkhimmash. Equipment supply contracts have been signed with 35 Russian companies as well as foreign suppliers who will furnish specialized equipment, in particular, a condensate and a natural gas liquids loading unit for rail tank cars produced by Scherzer, Germany, and valves supplied by Hungarian manufacturer, DKG-East. The support facilities; garages, fire station, storage, repair shops, service and operation block, boilers and water intake facilities are also being completed as is work at the rail car loading area. Two additional railway lines are being built at the «Limbey» rail crossing and a 4.2 kilometer access road has been completed. Railway lines are scheduled to be completed in September 2004.

The construction of the Purovskiy Plant began in October 2003 and is a mutli-phase project with initial throughput capacity of 2 million tons per annum. Fifty-five percent of the planned capital expenditures have already been expended and more than 650 persons and over 80 pieces of equipment are currently operating on the site. The plant is scheduled to be completed by January 1, 2005, and launched after start-up operations in the first quarter of 2005.

The project with an estimated cost of USD 150 million has been financed through internally-generated cash flows and external loans and credits. The Company is currently studying the feasibility to expand the Plant’s processing capacity up to 5 million tons per annum.

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PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.