NOVATEK Signs Marketing Agreement With Yeochun Naphtha Cracker Center
SINGAPORE and MOSCOW, Feb. 5, 2013
SINGAPORE and MOSCOW, Feb. 5, 2013 /PRNewswire/ --OAO NOVATEK ("NOVATEK" or
the "Company"), announced today the conclusion of a commercial agreement with
the Yeochun Naphtha Cracker Center ("YNCC"), a South Korean petrochemical
company, for supplying up to three hundred thousand tons of light naphtha
produced at the Ust-Luga Gas Condensate Transshipment and Fractionation
complex ("Complex") in 2013.
First Deputy Chairman of NOVATEK's Management Board, Mikhail Popov noted: "The
contract with YNCC is another step in the expansion of customer portfolio for
the Ust-Luga Complex guaranteeing sustainability of our integrated production
Executive Vice President of YNCC, Paul Y. Joo commented: "NOVATEK has already
worked out reliable logistics of product supplies to South Korea, and we are
confident in the security of supply of the required volumes of naphtha as a
feedstock for our production."
The Ust-Luga complex includes facilities for transshipment and fractionation
of stable gas condensate. The Complex will process up to six million tons of
gas condensate per annum and produce light and heavy naphtha, diesel and jet
fuel, as well as heating oil. NOVATEK is currently proceeding with
commissioning tests at the first stage, which has a capacity of three million
tons per annum. Construction works has also started at the second stage of the
Complex. The Complex will allow the Company to enter new markets, expand its
customer base and increase sales of higher value added products.
OAO NOVATEK is Russia's largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, the Company is
engaged in the exploration, production, processing and marketing of natural
gas and liquid hydrocarbons. The Company's upstream activities are
concentrated in the prolific Yamal-Nenets Autonomous Region, which is the
world's largest natural gas producing area and accounts for approximately 84%
of Russia's natural gas production and approximately 17% of the world's gas
production. NOVATEK is an open joint stock company established under the laws
of the Russian Federation. The Company's shares are listed in Russia on
MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker
Yeochun Naphtha Cracker Center (South Korea) was established in 1999 and is
involved in production of petrochemical products such as ethylene, propylene,
benzene, toluene, xylene, etc. The annual product output at the three plants
owned by the company amounts to 4.3 million tons.
SOURCE OAO Novatek
Contact: David Sowells, +1-202-701-9005
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