Russia’s Novatek finalizes Arctic LNG 2 fleet deals

Russian independent LNG producer Novatek has inked long-term charter deals securing a fleet of Arc7 ice-class tankers that will serve its second liquefaction project in the Arctic.

Arctic LNG 2 entered the deal for 14 vessels with SMART LNG, a venture consisting of Novatek and Russia’s largest shipping firm Sovcomflot.

The signing of the charter deals allowed SMART LNG to conclude the corresponding contracts with the VEB.RF Group and Zvezda yard for the construction and lease financing of these vessels.

This brings the total number of Arctic 2 LNG fleet to 15 ice-class vessels as the contracts for the pilot vessel were signed in October last year.

The construction of these LNG carriers will ensure year-round transport of LNG along the Northern Sea Route to the Asian Pacific region.

Furthermore, it will also provide an important stimulus to develop the Russian shipbuilding industry, Novatek said in a statement.

Arctic LNG 2 is located on the Gydan peninsula and includes the construction of three LNG trains with a capacity of 6.6 mtpa, each.

The project utilizes a new concept using gravity-based structure platforms to reduce overall capital cost and minimize environmental footprint in the Russian Arctic.

The Russian company expects to launch the first LNG train in 2023, with trains 2 and 3 to follow in 2024 and 2026, respectively.

Besides operator Novatek, the project partners include Total, CNPC, CNOOC, and the consortium of Mitsui and JOGMEC.

- Advertisements -

Most Popular

Chevron working to resume full Gorgon LNG production after ‘mechanical fault’

Chevron Australia, a unit of US energy giant Chevron, is working to resume full production from its Gorgon LNG...

MOL’s LNG carrier fleet to grow to 104 vessels by March 2025

Japan's shipping giant MOL expects its huge fleet of liquefied natural gas (LNG) carriers to increase to 104 vessels...

Gunvor in Italian small-scale LNG move

Geneva-based energy trader Gunvor has signed a non-binding deal to buy liquefied natural gas from LNEnergy's planned small-scale LNG...

More News Like This

TotalEnergies CEO: Mozambique LNG restart is not a matter of costs

French energy giant TotalEnergies had "good" discussions with Mozambique LNG contractors and they agreed not to inflate the costs...

Russia’s Gazprom to buy Shell’s stake in Sakhalin LNG terminal operator

Russia has approved the sale of a 27.5 percent stake, previously owned by LNG giant Shell, in the new...

Novatek reports profit of about $5.1 billion in 2023

Russian LNG producer Novatek reported a net profit of about 463 billion rubles ($5.09 billion) in 2023. The company...

TotalEnergies issues force majeure over Novatek’s Arctic LNG 2 project

French energy giant TotalEnergies has initiated a force majeure process on the Novatek-operated Arctic LNG 2 project in Russia...