Russia’s Novatek ships first LNG cargo to China via Arctic

MOSCOW: Russian natural gas producer Novatek delivered on Thursday the first ever liquefied natural gas (LNG) cargo to China via the Northern Sea Route (NSR) alongside the Arctic coast, which drastically cuts delivery time to Asian consumers. The shipments of LNG from Yamal LNG project via the NSR to China cuts transportation time and costs in comparison to other routes such as Suez Canal.

Novatek said a ceremony was held to commemorate the arrival of LNG tankers Vladimir Rusanov and Eduard Toll with cargo capacity over 170,000 cubic metres each to the Chinese port of Jiangsu Rudong.

“Utilising the Northern Sea Route as a viable transportation route contributes to the development of the northern regions and is very important for our country’s economic development,” Novatek’s head Leonid Mikhelson said in a statement. China’s National Energy Administration said China National Petroleum Corp (CNPC) will start lifting at least 3 million tonnes of LNG from Yamal starting in 2019.

The passageway is important for Yamal because it cuts shipping times to its main customers in Asia by nearly half — to 15 days — and thus saving time and Suez Canal fees incurred on the westward route.

— Reuters