Novatek Mulls Gas Supply to Remote Chukotka

Novatek has signed a co-operation deal with the government of Russia’s far eastern region of Chukotka on the potential supply of LNG for power generation and other uses.

Under the agreement, Novatek will consider introducing LNG to the region as a source of electricity, a fuel for maritime and automotive transport and for powering mining equipment, it said on September 4.

As Novatek expands LNG production in the Arctic, an increasing number of vessels carrying the fuel will pass by Chukotka on their way to Asia-Pacific markets. Novatek CEO Leonid Mikhelson said the region could use these supplies to phase out traditional fuels such as diesel and coal.

Because of its remote location, Chukotka is not connected to Russia’s national power system. It relies on an ageing nuclear power plant (NPP), coal-fired stations and small-sized diesel generators for its electricity needs. The NPP and some of Chukotka’s coal-based capacity is due to be replaced in 2021 by the world’s first floating NPP, the 70-MW Akademik Lomonsov, currently on route from Murmansk.