19 Oct 2017 17:52

Novatek plans to build Arctic LNG 2 gas carriers in Russia - Mikhelson

VERONA. Oct 19 (Interfax) - Novatek plans to build LNG carriers to transport output from Arctic LNG 2 in Russia, company head Leonid Mikhelson said during the Eurasian Economic Forum in Verona.

"Capacity is being created in Russia for construction of the tankers, which will be used for our project [Arctic LNG 2]," he said.

The main market for gas from Arctic LNG 2, which is the company's second LNG project and may have capacity for over 18 million tonnes a year, is countries in the Asia-Pacific region.

"The Asia-Pacific countries are the main market and the main driver for Arctic LNG 2," Mikhelson said, adding that some exporting countries are expected to become LNG importers in coming years: Malaysia and Indonesia, for example, will have to start buying on the market in 2021-2022.

Mikhelson also commented on financing for the new project, saying: "This is not the stage for any talks on financing. It is necessary to design the project, understand who our partners are going to be, how many there will be and on what terms. Then begin talks on external financing," he said.

Novatek does not expect to receive state funding for the new project [in contrast to Yamal LNG, which received the equivalent of $2.4 billion]. "We categorically have no desire to invest state money," he said.

Russia currently plans just one shipyard, Zvezda Shipbuilding Complex, which is being created on the basis of the Far Eastern Shipbuilding and Ship Repair Center by a consortium of Rosneftegaz, Rosneft and Gazprombank.

It will be Russia's only shipyard for building medium- and large-tonnage marine equipment for hydrocarbon exploration, production and transport. It will build tankers with displacements up to 350,000 tonnes, gas carriers with displacements up to 250,000 tonnes, ice class ships, offshore platform components for development of oil and gas fields on the shelf. The stages of the project will be completed by 2024, including a shipyard able to build medium- and large-tonnage ships and drilling, exploration and production platforms. Rosneft chief Igor Sechin has called on Russian companies to build tankers in Russia.

Novatek has ordered 15 Arc7 ice-class gas carriers for the Yamal LNG project from South Korea's DSME shipyard. Earlier Mikhelson said DSME signed an agreement with the Russian shipbuilding complex on exchange of competencies. "Under the agreement, it will be possible to receive the necessary competencies, scientific and technical information and train specialists," he said.