Novatek, Sovcomflot Form Shipping Joint Venture

Russian natural gas producer Novatek and compatriot shipping company Sovcomflot have decided to create a joint venture related to Arctic ice-class LNG carriers. 

The duo signed the heads of agreement during the Eastern Economic Forum in Vladivostok on September 4, 2019.

Under the agreement, the companies intend to create a shipping company, with the potential involvement of other joint venture participants.

As informed, the joint venture 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.

“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,” Leonid Mikhelson, Novatek’s Chairman of the Management Board, explained.

“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.”

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