Novatek eyes faster NSR transits

Russian producer Novatek is seeking faster ice-class LNG carriers for its Arctic LNG project as it strives to reduce Northern Sea Route (NSR) transit times.

The 15-17 Arc7 ice-class vessels that Novatek plans to order for its 19.8mn t/yr Arctic LNG 2 project will be 40pc faster than those already in operation, Novatek chairman Leonid Mikhelson said. The new vessels are designed more specifically for ice navigation and can travel through ice layers 2m thick at a speed of 8-9 knots.

Unlike the new vessels, the 15 Arc7s ordered for the 16.5mn t/yr Yamal LNG project were designed for both open water and ice navigation. Yamal cargoes have been transshipped either at terminals in northwest Europe or at the Norwegian port of Honningsvag in recent months. By contrast, Novatek plans to have already completed its 20.9mn t/yr Murmansk and 21.7mn t/yr Kamchatka transshipment facilities by the time Arctic LNG 2 starts production, which significantly reduces the distances the new vessels will have to cover in open waters.

Novatek intends to use these vessels to realise its ambition of year-round transit of the NSR. The Arc7s will transport LNG from Arctic LNG 2's Utrenniy terminal on the Gydan peninsula to the Kamchatka transshipment complex.

A pilot vessel is already on order with the Rosneft-led Zvezda shipyard in Russia's far east. The shipyard is likely to build the remainder of the Arc7s, the first five of which are expected to be ordered by the end of 2019.

Rosatom — the state-mandated operator of the NSR — will be able to provide year-round transit of the passage by 2023, Russian deputy prime minister Yury Trutnev said today.

State-controlled shipowner Sovcomflot earlier said the technical parameters would differ for the 15-17 Arc7s that Novatek expects to order for Arctic LNG 2, compared with Yamal's vessels. The new vessels will have greater ice-penetration capabilities, chief executive Sergey Frank said, and improved ability to work with the Project 22220 icebreakers being built.

Novatek and Sovcomflot are set to form a joint venture for the construction and management of the Arctic LNG 2 vessels. State-owned bank VEB may finance the vessel orders.