2018 October 26

(RF Energy Minister Alexander Novak - On development of LNG production and exports)

Yamal LNG is the first anchor project for the development of the Northern Sea Route, new transport artery which can change the logistics of global trade between Europe and Asia. Today, the Northern Sea Route lets reduce the distance covered by energy products on their way from Asia to Europe and goods on their way from Europe to Asia by about 1/3. As of today, the Northern Sea Route transports only 6-9 million tonnes of cargo. We have an ambitious target of reaching an annual traffic of 80 million tonnes including 50 million tonnes of LNG and condensate produced on the Yamal and Gydan peninsulas.

Of course, the development of the Northern Sea Route is not possible without active involvement of Russia’s nuclear-powered fleet and its development. There is a huge order for icebreakers – up to five multipurpose nuclear-powered 60 MW icebreakers and up to three nuclear-powered 120MW icebreakers of Leader class.

A programme on promotion of shipbuilding and equipment for shelf development has been prepared by the Ministry of Industry and Trade together with Rosatom in order to develop the NSR scientific and production base. The programme was approved by the Government of the Russian Federation in March 2017. It covers the construction of nuclear-powered icebreakers. Besides, Zvezda shipyard is to be awarded with a contract on construction of Arc7 gas carriers for servicing Arctic LNG 2.

One more important aspect of LNG production development is the construction of LNG transshipment terminals in Kamchatka and Murmansk. They will ensure maximum use of the Arctic potential for reduction of operation costs with transshipment of LNG from Arc7 ships to non-Arctic gas carriers.

From report on LNG production and exports delivered at RF Government meeting.