(Updates with Russian market share in fifth paragraph.)
Dec. 9 (Bloomberg) -- OAO Novatek, Russia’s second-largest natural-gas producer, plans to double gas output by 2020 as it gains a bigger share of the domestic market and breaks into global markets with liquefied natural gas production.
Output may double to 112.5 billion cubic meters by 2020 from current assets as Novatek invests 580 billion rubles ($18 billion), the company said today in a presentation. That doesn’t include Novatek’s share of the $18 billion to $20 billion spending for the planned Yamal LNG project in the Arctic.
The 2015 target has been raised to 68 billion cubic meters from 65 billion, Chief Financial Officer Mark Gyetvay said on a conference call with analysts.
Novatek, controlled by billionaires Leonid Mikhelson and Gennady Timchenko, is boosting output as OAO Gazprom, the world’s biggest gas producer and Russia’s export monopoly, seeks to ship more fuel abroad from aging fields. France’s Total SA said today it raised its stake in Novatek to 14.1 percent after paying about $800 million to add 2 percent.
Novatek aims to capture 13 percent of domestic supply, its only market now for natural gas, from 8 percent this year, even as consumption of the cleaner-burning fuel rises, according to the presentation on the company’s website.
Production of gas for sale will rise about 41 percent this year to 52.6 billion cubic meters this year, according to a presentation on the company’s website.
Novatek plans to double gas condensate and crude oil output to 8.6 million metric tons in 2015 and 13.3 million metric tons a year in 2020, according to the presentation.
--With assistance from Stephen Bierman in Moscow. Editors: Torrey Clark, Alex Devine
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