Novatek, Sovcomflot Ink Shipping Pact

Russian independent gas producer Novatek and Russian shipowner Sovcomflot signed a strategic cooperation agreement.

This aims to develop a strategic partnership for ships to transport LNG and condensate produced at Novatek-operated Yamal LNG, its planned Arctic LNG 2 venture, and any other Arctic projects that it plans.

“Our unique partnership with Sovcomflot will optimize our LNG transport model through the Arctic zone by efficiently and effectively using ice-class tankers,” said Novatek CEO Leonid Mikhelson.

He added that, in order to implement Novatek's long-term strategy of eventually producing more than 55mn metric tons of LNG by 2030, that the company needs to establish an efficient Northern Sea Route shipping model. "Combining our efforts with Sovcomflot, one of the global leaders in navigation in harsh ice conditions, will allow us to achieve maximum efficiency in managing our transportation costs.”

(Banner photo shows the Yamal LNG site in Sep.2017 ; courtesy of Novatek)