Novatek May Delay Ust-Luga Gas-Condensate Port, Vedomosti Says

OAO Novatek, Russia’s largest independent natural-gas producer, may delay the opening of the Ust-Luga gas-condensate terminal on the Baltic Sea from the fourth quarter of this year, Vedomosti reported.

Novatek faces engineering issues similar to those that OAO Transneft encountered at its Ust-Luga oil terminal, which is to begin operating in the first quarter after a delay from November, the Moscow-based newspaper said today, citing a letter from Transneft President Nikolai Tokarev to Russian Deputy Prime Minister Igor Sechin.

Novatek and Transneft, Russia’s monopoly operator of oil pipelines, are building their terminals at neighboring piers in the port of Ust-Luga, according to Vedomosti. The companies are not partners in either project, and the newspaper didn’t explain how Tokarev might know of Novatek’s plans for its condensate terminal.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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