Novatek Enters Pact on LNG Transhipment

Novatek has entered a co-operation pact with Japan’s Mitsui OSK Lines (MOL) and Japan Bank for International Co-operation (JBIC) on developing LNG transhipment terminals.

The construction of these terminals in Kamchatka and Murmansk will “optimise logistics and maximise the efficiency” of Novatek’s LNG deliveries from the Arctic to markets, CEO Leonid Mikhelson said in a statement on September 26. “We think we will reach final arrangements for these projects by year end.”

The facilities will allow Novatek to offload LNG from icebreaking carriers to regular LNG tankers, reducing transportation costs. It wants to time their completion to coincide with the launch of its 19.8mn mt/yr Arctic LNG-2 terminal on the Gydan Peninsula in 2023. Japan’s Mitsui and Jogmec are among Arctic LNG-2’s shareholders.