MOL, Marubeni Push Ahead with LNG Transhipment Plans in Russian Far East

Mitsui O.S.K. Lines and Marubeni Corporation have signed a business cooperation agreement with Japanese Project Promotion Vehicle in the Far East LLC (JPPV).

The move is aimed at facilitating the duo’s plans on establishing LNG transhipment terminals in the Russian Far East in line with the Memorandum of Understanding (MoU) signed in 2017 with Russian gas company Novatek.

Namely, the MoU paves the way for conducting a joint feasibility study aimed at establishing an LNG transhipment and marketing complex off Kamchatka Peninsula, where Advanced Special Economic Zones (ASEZ) is located. As disclosed, the agreement in meaningful for the commercialization of the transhipment plan.

JPPV is jointly established by Japan Bank for International Cooperation, Far East Investment and Export Agency, Far East and Baikal Region Development Fund, with the objectives of encouraging Japanese companies to launch business in Russia and promoting Japanese investment in Russia and the Far East.

The announcement is being reveled just days after Novatek informed that it had signed an agreement of intent on implementing a project for the construction of a marine LNG transhipment complex in the territory of Kamchatka.

The deal, signed with the Ministry of the Russian Federation for Development of the Far East and the Government of Kamchatka Territory, provides for Novatek’s investment in the amount of around RUB 70 billion (USD 998.5 million).

Separately, Novatek has inked an agreement with Russian Rosatom on the establishment of a joint venture, which aims to develop, finance and implement a project to create a LNG-fueled icebreaker fleet to support Novatek’s Arctic projects in frozen areas along the Northern Sea Route as well as building port fleet and supply vessels.