VEB to eye participation in project on LNG production and transportation from Yamal Peninsula
Within the framework of the St. Petersburg International Economic Forum – 2013, state corporation Vnesheconombank (VEB, Bank for Development and Foreign Economic Affairs), NOVATEK OJSC and Sovcomflot OJSC signed a memorandum on cooperation, VEB press center says.
The document was signed by Vnesheconombank Chairman Vladimir Dmitriev, NOVATEK Board Chairman Leonid Mikhelson, Sovcomflot President and Board Chairman Sergey Frank. The memorandum is a logical continuation of work being carried out by VEB and NOVATEK from 2011 on joint implementation of a project on production and transportation of LNG from the Yamal Peninsula.
The parties are to cooperate in construction of gas carriers for the project operator – OJSC Yamal LNG (NOVATEK subsidiary). According to the document, Vnesheconombank is to look into the possibility of financing the construction of vessels while Sovcomflot confirms its interest in operating the new vessels as a bareboat charterer and\or technical manager.
The LNG carriers are due to be built at one of the world’s leading shipyards, following a tender process.
The design of the 170,000m³ capacity gas carriers has been specially developed for the LNG Yamal project and is unique in its technical characteristics. A high ice class (Arc7) means the new vessels are well suited to the challenging climatic conditions of the Arctic. To ensure uninterrupted operations, the gas carriers will be fitted with a diesel-electric propulsion system that includes three Azipods, each with an output of 15MW. At present, there are no other gas carriers in the world with an equivalent overall propulsion power.
Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2012 were appraised at 907 billion cubic meters of natural gas. The Project also requires the construction of transport infrastructure including a sea-port and an airport located at Sabetta (north-east of the Yamal Peninsula). Yamal LNG is currently owned by NOVATEK (80%) and TOTAL (20%).
NOVATEK OJSC is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 90% of Russia’s natural gas production and approximately 17% of the world’s gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
Sovcomflot Group is Russia’s largest shipping company and one of the world’s leading shipping companies specializing in the maritime hydrocarbons transportation and supporting continental shelf exploration and oil & gas production. The SCF fleet includes 156 vessels with a combined deadweight of around 12 million tonnes. One third of them have a high ice class. The Group specialises in hydrocarbon transportation from regions with challenging ice conditions. Sovcomflot supports large-scale offshore energy projects in Russia and the rest of the world, including: Sakhalin-I, Sakhalin-II, Varandey, Prirazlomnoye, Tangguh, Escobar, and Peregrino. The company is registered in Saint-Petersburg and has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Limassol, Madrid, Singapore and Dubai.
