Russian independent oil and gas producer Novatek has signed an agreement with the Russian Far East Development Ministry and the Kamchatka government for the construction of a marine LNG transshipment complex in Kamchatka (Russia). Novatek commits to investing RUB70bn (roughly US$1bn). The project would increase the efficiency of LNG deliveries from the Arctic zone and optimize transportation logistics.
Meanwhile, Novatek also inked a memorandum of understanding (MoU) with Japan Oil, Gas and Metals National Corporation (JOGMEC) to jointly explore opportunities to cooperate on Novatek's LNG projects in the Yamal and Gydan peninsulas, which would include Yamal LNG and Arctic LNG. The two companies will also look upon LNG marketing opportunities in the Asia-Pacific region.
The Northern Sea route cuts the travel days from the Yamal LNG project in Russia to Asia in half compared to the Southern Sea Route via the Suez Canal. Volumes transported via the Northern Sea route have increased and this has become a key issue for Novatek, which shipped its first LNG cargo from Yamal LNG to China in July 2018. Such shipments are expected to increase in the future to meet the growing natural gas demands of the Asian-Pacific markets.