OREANDA-NEWS. August 18, 2010. NOVATEK (“NOVATEK” and/or the “Company”) today announced the completion and launch of an unstable gas condensate de-ethanization unit at its Yurkharovskoye field as well as the 326 kilometer unstable gas condensate pipeline connecting the field with the Company’s wholly-owned Purovsky Gas Condensate Processing Plant (“Purovsky Plant”).

The construction of the unstable gas condensate de-ethanization unit and pipeline, completed within schedule and budget, will allow NOVATEK to de-ethanize and transport up to three million tons of unstable gas condensate per annum from the Yurkharovskoye field, and enable the Company to increase annual gas condensate production.

The Company was able to optimize the capital expenditures required to complete the pipeline by incorporating solar and wind power generation units to provide the necessary electricity to operate the pipeline’s tele-mechanic system and valves, instead of using a fixed electrical line.

 “The successful launch of our new facilities provides sufficient capacity to meet the Company’s current and future de-ethanization and transportation needs, as well as increasing the economic and operational efficiencies of unstable gas condensate production at the Yurkharovskoye field by eliminating the risks and costs associated with using third parties for these services” according to Alexander M. Fridman, Deputy Chairman of NOVATEK’s Management Board.

The Yurkharovksoye field is the largest of the Company’s exploration and production assets in terms of reserves and production and is the main driver for NOVATEK’s mid-term production growth. The new de-ethanization unit and pipeline will allow the Company to fully control the production and transportation of unstable gas condensate from its field to the Purovsky Plant, and is considered an integral part of NOVATEK’s gas condensate value chain.