Novatek delivers 1st Yamal LNG cargo to Japan via NSR

Russia’s Novatek has delivered the first cargo from its Yamal LNG project to Japan eastbound via the Northern Sea Route.

The company said on Friday it delivered the cargo onboard the 172,000-cbm Vlaidmir Rusanov to the Ohgishima LNG terminal.

Novatek Gas & Power Asia, a unit of the Russian LNG producer, sold the cargo as part of a spot contract.

“This cargo is the company’s first successful experience of entering and unloading an Arc7 ice-class tanker in a Japanese port, which allows the company to increase the volume of LNG supplies to this country,” Novatek said.

Shipping LNG from Yamal via the NSR cuts transportation time and costs compared to other routes such as Suez Canal.

This year, Novatek started using the route earlier than in previous years. The company sent the first cargo to China on May 18.

To reduce transportation costs even further, Novatek recently ordered two giant storage and transshipment facilities at Korea’s DSME.

The giant units will have a capacity of 361,600-cbm. each.

They will serve Novatek’s projects in Murmansk and Kamchatka that the Russian company will develop with Mitsui O.S.K. Lines.

Novatek will use the units to transship Yamal and Arctic 2 cargoes from ice-breaking LNG carriers to conventional ships.

“We focus a significant amount of attention to develop and enhance the logistical scheme for our LNG projects,” said Lev Feodosyev, Novatek first deputy chairman.

“The future launch of a transshipment terminal in Kamchatka will significantly expand our opportunities to cost competitively deliver and supply LNG to the entire Asia-Pacific region,” he said.

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