Yamal LNG Goes East to Asia

Russian privately held gas giant Novatek said July 6 that its two Arc 7 ice-class LNG tankers, the Vladimir Rusanov and Eduard Toll are completing the Northern Sea Route passage in an easterly direction.  

Vladimir Rusanov has arrived at the Bering Strait, while Eduard Toll has entered open water in the Chukchi Sea. Both tankers were dispatched from the port of Sabetta loaded with LNG produced in Yamal LNG and are now heading towards the Chinese port of Jiangsu Rudong. The ice-covered part of the route was crossed in nine days with no ice-breaking support, thus confirming the outstanding ice-breaking capabilities of the Arc 7 ice-class vessels, Novatek said.

Chinese entities own just under a third of the project; CNPC has 20% and the Silk Road Fund has 9.9%.

Novatek created May 18 a transportation subsidiary called Maritime Arctic Transport to manage and optimise transportation costs, build up the unique competencies of Arctic navigation and ensure centralised management of the Arctic fleet.

Novatek CEO Leonid Mikhelson said: "We are happy that the Arc 7 ice-class tankers with LNG produced by our Yamal LNG project opened this year’s summer navigational period on the Northern Sea Route. 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 route, which was only made possible due to the unique characteristics of ice-class LNG carriers developed for the company to serve the Arctic projects.”

Late last month Novatek signed a strategic co-operation agreement with state Sovcomflot, in order to optimise its LNG transport model through the Arctic zone by efficiently and effectively using ice-class tankers.

Novatek increased natural gas sales volumes by 0.5% to 65bn m³ in 2017, including the first LNG sale in December 2017 from Yamal LNG project with the nameplate capacity of 5.5mn mt/yr.

Novatek 1Q 2018 gas sales  were at 20.3bn m³, representing an 8.1% increase on the same period last year, owing to the start of LNG exports and an increase in volumes sold in the Russian Federation. The first two tankers from Yamal LNG plant departed from Sabetta December 8-9, last year.