Russia's Novatek, Japan's MOL, JBIC agree to co-build LNG terminals

Source: Xinhua| 2019-09-26 22:43:14|Editor: yan
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MOSCOW, Sept. 26 (Xinhua) -- Russian gas producer Novatek said Thursday that it has signed an agreement with Japan's shipper Mitsui O.S.K. Lines (MOL) and the Japan Bank for International Cooperation (JBIC) to jointly build liquefied natural gas (LNG) transshipment complexes in Russia's Kamchatka and Murmansk regions.

The pact stipulates a possible acquisition of interests and potential financing for the future construction of the LNG terminals, and the three parties expected to reach final arrangements by the end of 2019, Novatek CEO Leonid Mikhelson said.

The terminals in the Far East and northwestern Russia could optimize transport logistics, increasing the efficiency of LNG deliveries from the Yamal and Gydan peninsulas in the Arctic zone, Mikhelson told reporters.

He noted that the deliveries would be destined for key markets in the Asia Pacific such as Japan.

Novatek had earlier signed the heads of agreement with Russian shipper Sovcomflot to co-build and operate Arctic ice-class tankers for transporting LNG from Novatek projects, including the Arctic LNG 2.

The Arctic LNG 2, with an investment of over 21 billion U.S. dollars, is planned to have a production capacity of 19.8 million tons per year and is expected to export its first LNG cargo between 2023-2026.