PAO Novatek, Russia’s largest independent gas production and sales company, has created a transportation subsidiary names Maritime Arctic Transport.
The purpose of the new subsidiary is to manage and optimise transportation costs, build up Arctic navigation competencies and ensure centralised management of its Arctic fleet.
Leonid Mikhelson, chairman of Novatek, commented: “Novatek’s long-term development strategy envisages a significant growth in LNG production from the company’s vast hydrocarbon resource base located on the Yamal and Gydan peninsulas in the Arctic zone of more than 55 million tons per annum by 2030. Therefore, establishing an efficient Northern Sea Route shipping model is one of our key priorities to realize our long-term strategy. Creating our own shipping company fully supports this goal and will optimize transport cost and ensure a well-balanced, centralized management structure to improve the competitiveness of Novatek’s Arctic projects.”
Novatek has various assets in the Yamal-Nenets Autonomous Region, including a 50.1% stake in the Yamal LNG project which has already shipped over two million tons of LNG. The company has been eyeing an order for 15 LNG carriers at Zvezda in addition to the 15 vessels ordered with Sovcomflot at South Korea’s DSME. The company also has various collaborations and agreements with Dynagas, MOL, Teekay, Cosco and China LNG Shipping.