Russian state-owned maritime infrastructure firm Rosmorport said it has awarded a contract to China Communications Construction Company (CCCC) to work on Novatek’s LNG transshipment complex in Kamchatka.
Under the contract signed on August 18, CCCC would work on the approach channel as well as other facilities ensuring safe navigation in Bechevinskaya Bay where the LNG transshipment complex would be located, according to a Rosmorport statement.
Moreover, the contract has a price tag of about 19.6 billion rubles ($263.8 million).
Rosmorport says the scope of dredging could reach about 16.2 million cbm of material.
Also, the 6 kilometers long channel will be ready by the launch of the complex planned for 2023.
As previously reported by LNG Prime, the Russian government is backing the construction of the LNG transshipment complex in Kamchatka, which would help Novatek slash shipping costs.
Russian Prime Minister Mikhail Mishustin has earlier this year approved an investment of more than 21 billion rubles ($282.6 million) for these works.
Novatek’s unit Arctic Transshipment will operate the Kamchatka complex which will handle about 21.7 million tonnes of LNG per year.
The complex will transship Yamal and Arctic 2 LNG cargoes from Arc7 ice-class tankers to conventional ships.
This transshipment hub will significantly reduce transportation costs and shipping time of Arctic LNG cargoes going to Asia.
Novatek is also building the second transshipment hub in Murmansk. Earlier this year, it sold a 10 percent stake in both of the facilities to France’s TotalEnergies.
Each complex will have a floating LNG storage unit with a capacity of 360,000 cubic meters with two ship-to-ship transshipment points.
