Russian natural gas producer Novatek and shipping company Sovcomflot signed the Agreement to create a joint venture related to Arctic ice-class LNG carriers.
during the Eastern Economic Forum in Vladivostok on September 4, 2019.
In accordance with the agreement, Novatek and Sovcomflot intend to create a shipping company, with the potential involvement of other joint venture participants, that will will focus on managing the construction and operations of Arctic ice-class LNG carriers, ensuring the optimized transportation from Novatek’s future LNG projects in the Russian Arctic region, including the Arctic LNG 2 project.
Leonid Mikhelson, Novatek’s Chairman of the Management Board, said: “The efficient development of the Northern Sea Route as a viable, year-round navigational route requires consolidating experience in ice navigation, applying new technological solutions, and implementing the best international standards for navigational safety and training.”
“An optimized model of transporting LNG from the Russian Arctic region via the Northern Sea Route to major global markets, including the Asia-Pacific region, will support the successful implementation of Novatek’s Arctic LNG projects as well as reaching the goal set by the Russian President to ensure an increase in annual cargo traffic along the Northern Sea Route to 80 million tons in 2024.”
Novatek is the largest independent natural gas producer in Russia, in 2017 the company entered the international gas market in connection with the successful launch of the Yamal LNG project. Established in 1994, the company is engaged in the exploration, production, processing and marketing of gas and liquid hydrocarbons. The Novatek fields and license areas are located mainly in the Yamalo-Nenets Autonomous Okrug, the largest region in the world in the production of natural gas, which accounts for about 80% of production in Russia and approximately 15% of the global volume.