LNG Carriers are completing the Northern Sea Route Passage
Novatek’s two Arc7 ice-class tankers carry towards China the LNG produced at Yamal gas field
Novatek’s two Arc7 ice-class LNG tankers Vladimir Rusanov and Eduard Toll are completing the Northern Sea Route passage via the Eastern direction; both tankers were dispatched from the port of Sabetta loaded with cargos of LNG produced by Novatek’s Yamal LNG project and are now heading towards the Chinese port of Jiangsu Rudong.
The ice-covered part of the route was passed in only 9 days with no ice-breaking support, thus confirming the outstanding ice-breaking capabilities of the Arc7 ice-class vessels.
“These shipments were the first voyages with Russian LNG via the Northern Sea Route without escort of an icebreaker. Moreover, they mark the start of regular LNG shipments via the Northern Sea Route, which was only made possible due to the unique characteristics of ice-class LNG carriers developed for us to serve the Arctic projects” noted Novatek’s Chairman of Management Board Leonid Mikhelson who, in a separate move, signed with Sergey Frank, General Director of Sovcomflot, a Strategic Cooperation Agreement on developing a strategic partnership to transport hydrocarbons (LNG and gas condensate) produced at Yamal LNG, Arctic LNG 2 and other Arctic projects. “Our unique partnership with Sovcomflot will optimize our LNG transport model through the Arctic zone by efficiently and effectively using ice-class tankers” added Mikhelson, who heads one of the largest independent natural gas producers in Russia, founded in 1994. “To implement our long-term development strategy to produce more than 55 million tons of LNG by 2030, we need 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”.
At the end of June Yamal LNG shipped the first cargo of LNG to Spanish company Gas Natural Fenosa in accordance with the long-term offtake agreement when 170,000 cbm Arc7 ice-class LNG carrier Fedor Litke unloaded in the port of Mugardos; annual sales volumes according to the 24-year long-term offtake contract are 2.5 million tons of LNG, equal to 3 billion cbm of natural gas.
“The first LNG tanker shipped to Gas Natural Fenosa marks a new milestone in Russian natural gas deliveries as it is the first Russian gas delivered under long-term agreements to Spain where Russian pipeline gas is not supplied” Mikhelson pinpointed.