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.

Most Popular

SEFE, Ksi Lisims LNG seal long-term LNG supply deal

German gas and LNG importer Securing Energy for Europe (SEFE) has signed a long-term LNG sale and purchase agreement with Ksi Lisims LNG for volumes from the latter’s planned export project in Canada.

Egypt remained top destination for US LNG shipments in August

FSRU-based LNG import terminals in Egypt were the top destinations for US liquefied natural gas shipments for the third month in a row in August, with Europe again becoming the preferred destination for US cargoes over Asia, according to the Department of Energy’s LNG monthly report.

GasLog Partners to redeliver LNG carrier after repairs

GasLog Partners, part of Greek LNG carrier owner GasLog, will redeliver the 2013-built LNG carrier GasLog Shanghai, damaged in an incident in the Strait of Hormuz in August, to its owners after the vessel completes repairs at a yard in Singapore.

More News Like This

Chinese yard wraps up maintenance work on Dynagas LNG carrier

China’s Huarun Dadong yard has completed repair work on the Arc7 ice-class LNG tanker Nikolay Zubov, operated by Greece's Dynagas.

Novatek’s gas sales down in Q3

Russian LNG exporter Novatek reported lower natural gas sales, including LNG, in the third quarter this year than in the same period last year.

PV Gas in LNG supply talks with Novatek

Petrovietnam Gas, a unit of state-owned Petrovietnam, is in talks with Russian producer Novatek to buy liquefied natural gas (LNG) from the latter as part of its plans to diversify its LNG supply sources.

Russian LNG production up 13.7 percent in January-August

Russian liquefied natural gas (LNG) production rose 13.7 percent in January-August this year, according to the Russian statistics agency Rosstat.