Rosatom and Novatek agree to transport 17 million tons of LNG along the Northern Sea Route by 2020

Within the project “Yamal LNG”, Rosatom and Novatek have reached an agreement on the provision of icebreaker assistance for vessels along the Northern Sea Route for 15 years; by 2020 the volume of the LNG transportation will make up 17 million tons.

The general agreement on cooperation was signed by the Novatek’s Head, Leonid Mikhelson and the State Corporation Rosatom’s General Director, Sergei Kiriyenko in Moscow on Monday.  The companies also intend to develop the cooperation in the organization of safe icebreaker assistance for vessels along the Northern Sea Route.

The signed document also secured the agreement between the parties to develop a mutually beneficial partnership by coordinating their investment and innovational activity in the following areas: the  implementation of the safe and efficient movement in the Arctic waters, the White and the Baltic Seas, the coordination of related investment projects and the creation of new technologies, the development of competitive products to increase the efficiency of prospecting , production, transportation, storage and processing of natural gas.

In particular, the parties plan to cooperate in the organization of the transportation of construction materials and finished products of the LNG plant in the Yamal Peninsula.

“Rosatom considers the development of the Northern Sea Route one of its main tasks. For this we construct nuclear-powered icebreakers of new generation, guaranteeing a reliable operation of this major traffic artery in the long run. The signing of the agreement is mutually beneficial, because it is important for Rosatomflot to have a stable order for the provision of commercial goods, and for such companies as Novatek – the confidence in the possibility to transport hydrocarbons with the most efficient way,”- Kiriyenko said.

In his turn, Mikhelson recalled that Novatek became a pioneer in the organization of the hydrocarbon transportation by tankers along the Northern Sea Route. “We plan to increase the scope of activities and develop our deposits, located in the Yamal and Gdan Peninsulas and in the area of Gulf of Ob. The cooperation with Rosatom allows us to build and implement our long-term plans,” - he added.

Within the project Yamal LNG, it’s planned to develop the South-Tambei gas condensate deposit in Yamal and to construct a LNG plant. Shareholders of Yamal LNG, Novatek and French Total, plan to start the development of the working documentation of the LNG plant. Also, the project envisages the creation of a seaport in settlement Sabetta in Yamal, and the construction ice-class tanker fleet. The first tanker is expected to go from the port in 2016.

Translated by Svetlana Kyrzhaly

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