16:26 GMT16 May 2021
Listen Live
    Business
    Get short URL
    143
    Subscribe

    MOSCOW (Sputnik) - Russian gas giant Novatek said on Wednesday that it had signed a heads of agreement with French oil major Total to sell a 10% stake in its LNG transshipment business.

    "PAO NOVATEK signed a Heads of Agreement with TOTAL on the sale of a 10% participation interest in Arctic Transshipment LLC ("Agreement"). Arctic Transshipment LLC is NOVATEK’s wholly owned subsidiary that will eventual operate two LNG [Liquefied Natural Gas] transshipment complexes currently under construction in the Kamchatka and Murmansk regions," Novatek said in a press release.

    The company added that LNG cargo will be transferred from the Arc7 ice-class LNG tankers to conventional tankers at each location.

    "The transshipment complexes are part of NOVATEK’s logistical chain to optimize the use of the Arc7 ice-class tanker fleet, with the aim to ensure efficient and cost-effective LNG transportation from Arctic LNG 2 and other NOVATEK’s projects. ... Each transshipment complex comprises of a floating LNG storage unit with a capacity of 360,000 cubic meters with two ship-to-ship transshipment points," Novatek stated.

    Novatek is the largest independent natural gas producer in Russia. It entered the LNG business in 2017 with the large-scale Yamal project, followed by the Arctic LNG 2 project. The latter is expected to be launched in 2023.

    Tags:
    Total, LNG, Novatek, Russia
    Community standardsDiscussion