SAINT-PETERSBURG, RUSSIA: PAO NOVATEK has signed a Share Purchase Agreement with TotalEnergies SE on the sale of a 10% participation interest in Arctic Transshipment LLC.
“The transshipment facilities will ensure the optimal utilization of our ice tanker fleet and reduce the cost of transport to consuming markets for the Company’s existing and future LNG projects,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “The entry of our long-term partner TotalEnergies into the LNG transshipment project will enhance the competitiveness of our joint projects and contribute to the successful development of our LNG logistics chain in accordance with best industry practices in environmental protection and climate change mitigation.”
Arctic Transshipment LLC is NOVATEK’s wholly owned subsidiary that will operate two LNG transshipment complexes currently under construction in the Kamchatka and Murmansk regions.
The transshipment complexes are part of NOVATEK’s logistical chain to optimize the use of the Arc7 ice-class tanker fleet, with the aim to ensure efficient and cost-effective LNG transportation from Arctic LNG 2 and other NOVATEK’s projects.
LNG cargos will be transferred from the Arc7 ice-class LNG tankers to conventional tankers at each location. Each transshipment complex comprises of a floating LNG storage unit with a capacity of 360,000 cubic meters with two ship-to-ship transshipment points.
Moreover, PAO NOVATEK and a subsidiary of TotalEnergies SE signed a Memorandum of Understanding (“MOU”) on decarbonization, hydrogen and renewables.
The Parties intend to cooperate on reducing greenhouse gas emission at joint projects by implementing carbon capture and storage technologies and utilizing renewable energy sources at joint LNG projects. In addition, the MOU considers the production and usage of hydrogen as a low-carbon fuel, as well as the marketing of carbon-neutral products including LNG.
Specifically, technical solutions will be considered to improve the efficiency of power generation for LNG production, including using waste heat utilization technologies. The MOU also envisages developing and deploying technologies to convert gas turbine equipment to hydrogen fuel. Furthermore, the Parties also agreed to work on solutions for the construction of wind power generation facilities and other renewable energy sources to reduce the carbon footprint of LNG projects.
“With our long-term partner TotalEnergies, we are implementing technical solutions to reduce our carbon footprint on our Yamal LNG and Arctic LNG 2 projects and increase the competitiveness of our LNG products,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Our long-term goal is to provide the global markets with affordable, secure and low-carbon natural gas, and the cooperation with TotalEnergies and our partners is one way for us to contribute to the decarbonization of the global energy industry.”