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Eastern Economic Forum

Novatek, Sovcomflot to set up JV for year-round supplies from LNG projects

Chief Executive Officer of Novatek Leonid Mikhelson said that "the company will enable us to operate the fleet more efficiently"

VLADIVOSTOK, September 4. /TASS/. Russia’s gas producer Novatek and shipping company Sovcomflot have signed an agreement to set up a joint venture to ensure year-round supplies of liquefied natural gas (LNG) from Arctic LNG 2 and other future LNG projects of Novatek.

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Novatek requests reduction of interest rates for LNG tankers construction — newspaper

"The company will enable us to operate the fleet more efficiently. Transport expenditures account for more than one fourth of LNG production cost," Chief Executive Officer of Novatek Leonid Mikhelson said at the signing ceremony that took place at the Eastern Economic Forum on Wednesday.

The joint venture will own vessels, operate the fleet and attract financing. It will also order 17 Arc7 tankers from Zvezda Shipyard and will monitor their construction. Their commissioning is planned for 2023-2026. The ships will sail under the Russian flag.

The funds for construction will be raised with the support of VEB.RF. It is planned to register the joint venture in Vladivostok.

The fifth Eastern Economic Forum is being held in Russia’s Vladivostok on September 4-6. Roscongress Foundation is the organizer of the event. TASS news agency is the event’s general information partner, the official photo hosting agency and moderator of the presentation zone focusing on the Russian Far East’s innovation opportunities.

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Eastern Economic Forum

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