Sovcomflot and NOVATEK sign Joint Venture Agreement

PAO Sovcomflot and PAO NOVATEK signed a Heads of Agreement while at the Eastern Economic Forum. The agreement specifies the creation of a joint venture shipping company.

The jointly held shipping company will aim to provide LNG transportation in the Arctic, namely NOVATEK’s Arctic LNG 2 project. More specifically, the joint venture will oversee the creation and operations for ice-class LNG vessels, focusing on international standards and optimization. Further, the joint venture will have the option to include more partners in the agreement.

“An optimized model of transporting LNG from the Russian Arctic region via the Northern Sea Route to major global markets, including the Asia-Pacific region, will support the successful implementation of NOVATEK’s Arctic LNG projects as well as reaching the goal set by the Russian President to ensure an increase in annual cargo traffic along the Northern Sea Route to 80 million tons in 2024,” commented NOVATEK’s Chairman of the Management Board, Leonid Mikhelson.