Novatek Establishes Company to Build Vessels, Floating Facilities Amid Global Tanker Shortage

Russia's largest producer of liquefied natural gas Novatek has set up a company to build its own vessels and floating facilities, according to the state's registry of authorised companies, amid a shortage of gas tankers due to sanctions.

Ilya Lushchikov, who is also head of Novatek's Murmansk LNG project, is in charge of the new company, called Severny Inzhiniring, or Northern Engineering, which was set up on March 25, according to the registry.

Novatek did not reply to a request for comment.

Western sanctions imposed in 2022 significantly limited the availability for Russia of ice-class tankers to transport LNG cargos.

Zvezda, Russia's most advanced shipbuilder, specializing in constructing large Arc7 ice-class tankers capable of breaking through ice up to two metres (6.6 feet) thick, has so far only delivered one Arc-7 class tanker for Novatek's Arctic LNG 2 plant.

Novatek, which owns 60% of the Arctic LNG 2 project, has said 15 Arc7 ice-class tankers will be built eventually at the Zvezda shipyard.

(Reuters)