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Novatek, Marubeni, Mitsui might create LNG complex in Russia

Novatek is one of the largest independent natural gas producers in Russia

MOSCOW, November 28. /TASS/. Novatek signed a trilateral memorandum of understanding with Marubeni Corporation and Mitsui O.S.K. Lines, Ltd., according to Novatek press release published on Tuesday.

"The memorandum of understanding defines the parties’ intentions and includes a specific action plan to explore the opportunities to establish an LNG transshipment and marketing complex in the Kamchatka Region, including investments in this infrastructure project," the company said.

"One of the main advantages of creating an LNG transshipment terminal at Kamchatka is its close proximity to consumers and the opportunity to ensure flexible sales terms for the key consuming markets of the Asian-Pacific region. The MOU demonstrates a high market interest and relevancy for this type of project to address market needs," Chairman of Novatek's Management Board Leonid Mikhelson commented on the deal.

Deputy Chairman of Novatek’s Board Lev Feodosiev said earlier that the company was considering construction of a large transshipment liquefied natural gas (LNG) terminal on the Kamchatka Peninsula with a capacity of up to 20 mln tonnes per year. The project’s aim would be to transship LNG from ice-class tankers capable of passing through the Northern Sea Route to ordinary ones, whose affreightment cost is lower and whose speed much faster.

Novatek is one of the largest independent natural gas producers in Russia. The company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Novatek is a public joint stock company, its shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE).