Novatek announced the conclusion of a commercial agreement with the Yeochun Naphtha Cracker Center (YNCC), a South Korean petrochemical company, for supplying up to 3,00,000 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 chain.
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 6 million tpa of gas condensate 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 tpa. 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.