Photo: Courtesy of Novatek

Novatek to sell stake in transshipment business to Total

Russia’s largest independent natural gas producer Novatek has signed heads of agreement to sell a 10 per cent stake in its LNG transshipment business to France’s Total.

Novatek to sell stake in transshipment business to Total
Courtesy of Novatek

Total has agreed to buy a stake in Arctic Transshipment, a unit of Novatek, set up to operate two LNG transshipment complexes currently under construction in the Kamchatka and Murmansk regions.

Novatek noted in its statement on Wednesday that these transshipment complexes are a part of the logistical chain to optimize the use of Arc7 ice-class tanker fleet, with the aim to ensure efficient and cost-effective LNG transportation from Arctic LNG 2 and other Novatek’s projects.

LNG cargoes will be transferred from the Arc7 ice-class LNG tankers to conventional tankers at each location.

Each transshipment complex comprises a floating LNG storage unit with a capacity of 360,000 cubic meters with to ship-to-ship transshipment points.