Russia’s largest independent natural gas producer and Yamal LNG operator, Novatek said on Monday it signed a deal for its planned liquefied natural gas transshipment terminal on Kamchatka Peninsula in the Russian Far East.
Novate signed an agreement of intent with the Ministry of the Russian Federation for the Development of the Far East and the Government of the Kamchatka Territory.
According to a Novatek statement, the deal provides for Novatek’s investment in the amount of about 70 billion Russian rubles ($993.7m).
The ministry and the Kamchatka government support the project and intend to render assistance in its implementation.
“The construction of the Kamchatka transshipment complex will increase the efficiency of LNG deliveries from the Arctic zone by optimizing transport logistics,” Leonid Mikhelson , Novatek’s head said in the statement.
He added that Novatek plans to create a Russian LNG hub for shipments to consumers in the Asia-Pacific region.
“This investment will contribute to the development of the Northern Sea Route allowing for the optimal use of the existing Arctic tanker fleet. The project will give an additional impetus to the economy of the Far East, create additional jobs and facilitate gasification of Kamchatka by using the boil-off gas from the LNG transshipment complex,” Mikhelson said.