Novatek, Japanese Firms to Work on Kamchatka LNG Complex

Russia’s Novatek has partnered up with Japanese shipping major Mitsui O.S.K. Lines (MOL) and Marubeni Corporation on developing an LNG complex in the Kamchatka Region.

The parties signed a trilateral Memorandum of Understanding that defines their intentions and includes a specific action plan.

Under the plan, the companies will explore the opportunities to establish a liquefied natural gas transshipment and marketing complex in the Kamchatka Region, including investments in this infrastructure project.

“One of the main advantages of creating an LNG transshipment terminal at Kamchatka is its close proximity to consumers and the opportunity to ensure flexible sales terms for the key consuming markets of the Asian-Pacific region,” Leonid Mikhelson, Chairman of Novatek’s Management Board, said.

“The MOU demonstrates a high market interest and relevancy for this type of project to address market needs,” Mikhelson added.

In December 2016, Novatek signed separate agreements with Japanese firms Mitsui, Mitsubishi Corporation and Marubeni Corporation Tokyo related to the LNG sector.

Under the deals, Novatek was to pursue strategic cooperation with Mitsui in the upstream and liquefaction sectors in Russia, LNG and liquid hydrocarbons supply, equipment and technology supply as well as in the joint development of LNG markets.

With Mitsubishi Corporation, Novatek said it would cooperate in implementing LNG projects in Russia and in supplying LNG and liquid hydrocarbons.

While the third deal, signed with Marubeni Corporation, Novatek said it had an aim at cooperating in the upstream and midstream Novatek Arctic LNG 2 project in Russia as well as in supplying of LNG, shipping arrangements, gas related infrastructure projects and transactions of other liquid hydrocarbons.

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