Russia’s Nornickel inks deal for LNG-powered icebreaker

Russian mining giant Norilsk Nickel (Nornickel) said it has signed a deal to build one LNG-powered icebreaker which would escort ships carrying the company’s cargo along the Northern Sea Route.

Nornickel said in a statement on Friday it signed an agreement of intent to design and build the vessel with Russian state nuclear energy firm Rosatom and the Far Eastern Shipbuilding and Ship Repair Center (FESRC), part of Rosneft.

The partners will form a working group to develop terms of reference for the dual-fuel icebreaker design and construction, select a shipyard, but also consider financing options, Nornickel said.

Moreover, the firm expects the working group to prepare a draft contract for the vessel design and construction by mid-2022, it said.

Replacing older vessel

Nornickel, the largest industrial company in the Russian Arctic, has “unique expertise” in operating the NSR, a strategic transport artery of the global logistics system.

In 2020, the Nornickel fleet transported over 1.5 mt of cargo along the NSR, which accounts for around 5 percent of the route’s total cargo turnover, according to Nornickel.

The turnover of the Arctic ports of Dudinka and Murmansk is growing. Nornickel has been modernising and expanding infrastructure in port cities, as well as increasing and renewing its fleet to handle the increased cargo traffic.

Nornickel said the new LNG icebreaker would enable the company to replace the Taimyr-type vessel that would be decommissioned in 2027–2029.

“The new icebreaker will help the company to meet its ambitious goals, and the agreement will serve as an important step in building partnerships between leading Russian companies in the development of the Arctic,” Vladimir Potanin, Nornickel president, said.

Earlier this year, Nornickel also revealed plans to build a small-scale LNG plant in the Murmansk region as it looks to convert its heavy mining equipment to dual-fuel technology.

The world’s largest nickel and palladium producer is already working on a pilot project to convert dump trucks to dual-fuel operation.

Most Popular

Germany, Egypt seal FSRU charter deal

Germany's Ministry for Economic Affairs and Energy has signed a deal with Egypt's state-owned EGAS to charter the 174,000-cbm FSRU Energos Power.

Energy Transfer seals Lake Charles LNG supply deals

Texas-based Energy Transfer has signed new supply deals for its planned Lake Charles LNG export facility in Louisiana as it works to take a final investment decision by the end of this year, according to its management.

Sempra still targets Port Arthur LNG expansion FID in 2025

Sempra Infrastructure, a unit of Sempra, still expects to make a final investment decision on the second phase of its Port Arthur LNG export project in Texas in 2025.

More News Like This

Zvezda: naming ceremony held for Arctic LNG 2 carrier

Russian Zvezda yard has hosted a naming ceremony for the first of fifteen ice-class Arc7 carriers which will serve...

Zvezda delivers LNG-powered tanker to Sovcomflot

Russian shipbuilder Zvezda has delivered one LNG-powered Aframax tanker to owner Sovcomflot and charterer Rosneft. Zvezda handed over the 112,650-dwt...

Novatek, Rosatom ink decarbonization deal

Russian LNG producer Novatek and compatriot state nuclear energy firm Rosatom have signed a memorandum of understanding to cooperate...

Zvezda to deliver another LNG-powered Aframax tanker to Rosneft

Russian Zvezda yard is continuing with the construction of a series of LNG-powered Aframax tankers for Rosneft’s unit Rosnefteflot. The...